Federal Reserve

Fed’s First Inflation Report Under Chair Warsh Shows Prices Near 3-Year High The Federal Reserve’s first inflation report under new Chair Kevin Warsh reveals U.S. consumer price growth approaching its highest level in nearly three years, prompting market reassessment of monetary policy direction. Core personal consumption expenditure (PCE) prices rose 3.1% year-over-year, up 0.3 percentage points from the prior month — the fastest pace since September 2023. Energy price volatility was a primary driver, with international oil prices surging over recent months due to ongoing Middle East geopolitical tensions, pushing up transportation and manufacturing costs. ...

The Federal Reserve has proposed granting limited master account access to crypto firms that have long sought such privileges. This move is seen as a significant signal of shifting US regulatory stance toward the crypto industry. Master accounts allow institutions to directly use the Fed’s payment clearing system, and gaining this access would substantially improve crypto firms’ operational efficiency and fund liquidity. The proposal is currently in the public comment period. ...

Federal Reserve Chair Jerome Powell has officially stepped down, marking the beginning of a new era of uncertainty for the world’s most influential central bank. Powell’s tenure spanned the COVID-19 pandemic, historic inflation spikes, and the most aggressive rate-hiking cycle in decades. The Fed now faces what analysts are calling a “regime change.” The new leadership will inherit an economy where inflation remains stubbornly persistent – the 30-year US Treasury yield has just broken to its highest level in nearly 20 years, sending global bond markets reeling. ...

The U.S. Senate officially confirmed a new Federal Reserve chair on May 13, marking a pivotal moment for monetary policy leadership under the Trump administration. Background The confirmation followed months of intense political negotiations. Trump allies repeatedly stated during Senate hearings that further interest rate cuts would require more convincing economic data, particularly given inflationary pressures stemming from the ongoing Iran conflict and global trade uncertainties. Market Reaction Wall Street responded cautiously to the news. Analysts emphasized that the new chair’s policy philosophy will shape future rate decisions, with direct implications for corporate borrowing costs, the housing market, and consumer lending conditions. ...

US inflation accelerates after weeks of Iran war, with energy costs as the main driver.

US Jobs Data Beats Expectations for Second Straight Month, Fed Rate Cut Outlook Diminishes The latest US employment report exceeded market forecasts for the second consecutive month, indicating a resilient labor market and reducing the Federal Reserve’s rationale for interest rate cuts. BBC reported that nonfarm payrolls surged well above economist expectations, with the unemployment rate remaining near historic lows. The data underscores sustained economic resilience while complicating the Fed’s monetary policy decisions. ...

The US Labor Department reported 115,000 new nonfarm jobs in April, nearly double market forecasts, though wage growth slowdown eased inflation concerns.

The Federal Reserve kept interest rates unchanged at its April meeting, with growing divisions among policymakers on future direction. Meanwhile, oil prices surged above $120 per barrel due to the Iran conflict, intensifying inflation concerns.

Federal Reserve Chair Jerome Powell announced he will continue to serve as a Fed governor after his chair term expires in May, thwarting President Trump’s plan to appoint a new board member and triggering a new institutional showdown in Washington.

As Fed Chair Jerome Powell prepares to step down and Trump’s nominee Kevin Warsh takes over, a look back at the most fractious public clashes between two of America’s most important economic figures — from ’numbskull’ to ’too stupid’ personal attacks.