Articles Tagged with Federal Reserve

There’s been chatter recently among economic experts that federal rate hikes would likely soon be on the way. Since 2016, the Federal Reserve has risen interest rates three times, but they’ve not not made any definitive announcements on the further hikes, leaving it open to speculation when they’d actually be introduced.

It appears that economists and experts have now been able to reach a consensus. In fact, it appears that the recent Senate tax reform bill passed on Friday may have forced the Fed’s hand. In a recent article, Reuters reports that the recent legislation has forced a shift in risk-forecasting; toward a need for higher federal rate hikes and sooner.

According to the article, experts are projecting three rate hikes between now and 2019. This is actually in accordance with the Fed’s own projections, however the reasoning is up for debate.

In his remarks to Congress, out-going New York Federal Reserve President William Dudley implored lawmakers to preserve and maintain key financial regulation measures in face of growing support for review of standing requirements.

Dudley recently announced his decision to retire from his position earlier (mid-2018) than his term allots. According to a Reuters article, part of Dudley’s responsibilities as New York Fed President extend to being a “point-person” for Wall Street. The New York branch serves as the Fed’s eyes and ears on Wall Street, providing on-the-ground reports of activity to the central bank.

“Do no harm”

Out of Sight, Out of Mind?

Is 2008 far enough in our rear-view that we’ve already forgotten the same mistakes that brought the financial industry-and U.S. economy-to the brink of collapse? Evidently, it is for banks and policymakers.

You have probably been hearing a lot of talk about impending “reviews” of current financial regulation measures; the very regulations put in place immediately following the aftermath of the 2008 collapse; the very measures that are meant to ensure that kind of thing doesn’t happen anymore. However, these calls for review signal a clear intention for some of a desire for wide-scale financial deregulation.

Low Interest Rates Remain

The Federal Reserve has decided to leave interest rates alone for the foreseeable future, according to a report from Reuters. Despite the fact that a target rate-hike was announced last December, the Fed has deferred any increases as part of a long-term plan to reignite the U.S. economy.

President of the Minneapolis Federal Reserve, Neel Kashkari, stated that “the U.S. economy has room to grow before it overheats”.

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