CBO projects US deficit will soar to $3 trillion this year
The Congressional Budget Office is projecting that the United States’s deficit will balloon to $3 trillion in 2021.
Federal Reserve
Fed officials now say they expect to raise rates by 2023
The Federal Reserve has decided to keep interest rates near zero even as too-high inflation concerns continue to percolate.
Deutsche Bank warns rising inflation could lead to worldwide financial distress
Sharply contradicting the consensus on Wall Street, Deutsche Bank has warned that ongoing US Federal Reserve neglect of rising inflation in favor of social goals could leave global economies “sitting on a time bomb,” and cause worldwide financial distress, CNBC reports. The Bank’s forecast goes against the view of most Wall Street economists that current inflation pressures are temporary and will subside as pandemic-related conditions are resolved.
Federal Reserve Holds Rates Steady, Shrugs Off Inflation Concerns
The Federal Reserve kept its benchmark interest rate unchanged Wednesday and repeated its view that the coronavirus pandemic will continue to weigh on the domestic economy even as conditions continue to improve.
US consumer prices at the highest since 2012
The US Labor Department reported Tuesday that the Consumer Price Index jumped 0.6% in March, the largest increase since 2012, Reuters reports. Economists have explained the spike is due to supply chains struggling to keep up with a surge in demand resulting from the vaccination campaign and from massive fiscal stimulus. Federal Reserve Chair Jerome Powell, among other experts, said higher inflation should be temporary as businesses adapt to demand.
Federal Reserve’s Digital Dollar Push Worries Wall Street
Banks, credit card companies and digital payments processors are nervously watching the push to create an electronic alternative to the paper bills Americans carry in their wallets, or what some call a digital dollar and others call a Fedcoin.
Fed holds rates near zero amid fresh signs US economic recovery is slowing
The Federal Reserve said during its first meeting of the year on Wednesday that it would leave interest rates near zero and reaffirmed its commitment to other easing policies amid fresh signs the U.S. economic recovery from the coronavirus pandemic is slowing.
Incoming Biden administration hopes to quickly pass $1.9 trillion relief bill
The incoming Biden administration will work toward the speedy passage of its $1.9 trillion coronavirus relief plan, Voice of America reports.
Treasury moves to end several crisis-era programs, drawing pushback from the Fed
The Treasury Department is looking to extend a handful of the Federal Reserve programs used to get markets through the early days of the coronavirus crisis but is going to end several others that expire at the end of the year.
Fed’s Powell: More important for U.S. to get digital currency right than be first
In any development of a cross-border digital currency, it is more important for the United States “to get it right than be first,” U.S. Federal Reserve Chair Jerome Powell said on Monday.
Fed: Interest Rates to Remain at Near Zero Through 2023
Interest rates are expected to stay at near zero through 2023, the Federal Reserve said Wednesday.
Federal Reserve’s $3 trillion virus rescue inflates market bubbles
The Federal Reserve’s $3 trillion bid to stave off an economic crisis in the wake of the coronavirus outbreak is fuelling excesses across U.S. capital markets.
Federal Reserve Admits There Is A Coin Shortage
The Federal Reserve announced on June 11th that COVID-19 had caused a disruption in the normal flow and distribution of circulation of US coinage. The following week, Jerome Powell, the head of the Federal Reserve, spoke before the US House Committee of Financial Services. He informed the members that the partial shutdown had created a stoppage of the flow of coins in our economy. Consequently, some retailers are asking customers to use exact change. Mr. Powell also shared that he believes the condition will be only temporary because the economy is opening back up.
U.S. Stocks Plunge Over Coronavirus and Economic Concerns
U.S. President Donald Trump pledged a strong, swift economic recovery and coronavirus vaccine after the U.S. market had its worst finish in three months.
Fed vows to support U.S. economy’s ‘long road’ to recovery after dire 2020
The U.S. Federal Reserve on Wednesday signaled it plans years of extraordinary support for an economy facing a torturous slog back from the coronavirus pandemic, with policymakers projecting the economy to shrink 6.5% in 2020 and the unemployment rate to be 9.3% at year’s end.
Federal Reserve sees interest rate target near zero through 2022
The Federal Reserve on Wednesday announced that it will keep its interest rate target near zero.
Fed Warns of Possible Long-Term Recession, 3 Million More File Jobless Claims
Federal Reserve Chair Jerome Powell says the United States may face a prolonged economic downturn, and new unemployment numbers out Thursday morning seem to reinforce his prediction. The latest stats reveal nearly 3 million more Americans filed for jobless aid –coronavirus-related layoffs now reaching 36 million.
40% of low-income Americans lost their jobs due to the pandemic
Nearly 40% of lower-income Americans lost work as the coronavirus pandemic began its assault on the U.S. economy, according to the Federal Reserve.
Democrats’ $3 trillion bailout bill is DOA, Republicans say
A new Democratic bill proposed by U.S. House Speaker Nancy Pelosi, D-Calif., without input from Republicans or the Trump administration is “dead on arrival,” top Republican leaders say.
Consumer debt hits new record of $14.3 trillion
Consumer debt hit a fresh record high to start 2020, even as credit card balances declined while Americans adjusted to the coronavirus pandemic.