Items tagged with FOMC:
News & Updates:
Administration weighing options to avoid recession; FDIC approves Volcker rule changes; Farmers frustrated over ethanol exemptions; Existing home sales climb 2.5% in July; CBO raises 10-Year forecasts for budget deficits by $809 billion; FOMC releases minutes from July meeting.
Trump wants to focus on Trade Pact before infrastructure deal; Efforts to create a Do Not Track registry reinvigorated with new “Do Not Track” bill from Senator Josh Hawley (R-MO); The EPA plans to reform the cost-benefit calculations of air pollution on human life; No budget deal was reached between Congressional leaders and the Trump administration on Tuesday; The FOMC released minutes from its April/May meeting.
Reports indicate that President Trump is still considering to circumvent legislatures and build a wall through an emergency declaration; House Democrats set the ground work to chip away at the GOP tax law; EPA announces intent to complete a new rule to boost higher ethanol blend gasoline; Midlevel negotiations between US and China wrap up, with some indication of productive discussion; Minutes from the FOMC reveal ambiguity towards the need for rate hikes.
The Federal Reserve lifted the federal funds rate on Wednesday by a quarter percentage point to a range of 1.5 percent to 1.75 percent.
Faculty Affiliate Susan Wachter comments on how this rate hike affects mortgages. ““I do see a 5 percent and even a 6 percent rate coming, a year or two out,” she says. “And that, amazingly enough, takes us back to normal. We’ve been living in a world where mortgage rates have been incredibly low.”
The likely elevation of San Francisco Fed President John Williams to lead the New York Fed has sparked a degree of public criticism rarely seen in the relatively obscure world of regional central bank chiefs.
Faculty Affiliate Peter Conti-Brown says central bankers and their allies claim “we get the best quality people” for the job, but it is a closed process.
He continues, suggesting one possible reform among several paths would be for Fed banks in search of a new chief to announce a short list of candidates, which could be done without any legal changes to the law that authorizes the Fed.