The Fed’s Latest Problem: A Strong Economy - WSJ

Mar 3, 2024 · The Fed characterizes its current monetary policy as restrictive, meaning it will slow the economy below its 1.8% estimate of potential growth and reduce inflation to 2%.

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The Fed’s Latest Problem: A Strong Economy - WSJ

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Mar 3, 2024 · The Fed characterizes its current monetary policy as restrictive, meaning it will slow the economy below its 1.8% estimate of potential growth and reduce inflation to 2%.

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The Fed’s Problem With The Job Market - WSJ - The Wall Street …

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Oct 31, 2022 · On the one hand, inflation is still running hot, with the Fed’s preferred measure of inflation showing consumer prices were 6.2% higher than a year earlier as of September.

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Inflation Stays Firm, But Not Enough To Derail December Fed Cut

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The Labor Department on Wednesday reported that consumer prices in October rose 2.6% from a year earlier. That marks a pickup in the pace of inflation from September, when prices were up …

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America’s Remarkably Resilient Economy - WSJ

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Jan 25, 2024 · Thursday’s fourth-quarter GDP report no doubt elated the White House and Federal Reserve. The economy grew at a solid 3.3% clip last quarter and 3.1% over the past …

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FAQs about The Fed’s Latest Problem: A Strong Economy - WSJ Coupon?

Was the Fed 'aggressive' in response to inflation?

Mickey Levy ’s claim that the Federal Reserve’s rate hikes in response to inflation were “aggressive” isn’t supported by the facts (“ The Fed’s Latest Problem: A Strong Economy ,” March 4). The Fed made its first rate increase of a meager 25 basis points on March 16, 2022, when the inflation rate was nearly 8%. The Fed did what it has always done. ...

How does the Fed manage the economy?

The Federal Reserve’s main tool for managing the economy is to change the federal-funds rate, which can affect not only borrowing costs for consumers but also shape broader decisions by companies like how many people to hire. WSJ explains how the Fed manipulates this one rate to guide the entire economy. Illustration: Jacob Reynolds ...

How did the Fed respond to inflation?

The Fed responded with aggressive rate hikes that reduced inflation within reach of its 2% longer-run target. Now that the economy is growing and productivity is improving, the central bank’s task is to adjust monetary policy to reflect the higher real interest rates that naturally accompany higher expected rates of return on capital. ...

Why did the Fed cut interest rates in September?

Officials began lowering rates at their previous meeting in September by making a larger half-point cut. They are trying to figure out where, exactly, rates should settle after high inflation over the past three years led to a dramatic series of rate increases. Copyright © 2024 Dow Jones & Company, Inc. ...

What is the economic outlook for the federal funds Committee?

The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate. In support of its goal light of the progress on inflation and the balance of risk s, the Committee decided to maintain lower the target range for the federal funds rate at 5-1 by 1/2 percentage point to 4-3 /4 to 5 -1/2 percent. ...

Why did the Fed reduce its benchmark interest rate?

The Federal Reserve reduced its benchmark interest rate for the first time since 2020, a key shift in its fight against inflation. WSJ's Nick Timiraos explains why this is the Fed's make-or-break moment. Photo Illustration: Ryan Trefes ...