I'm not attempting to provide an impossible degree of precision, but a general ballpark. Based on this analysis, I believe the appropriate Fed funds rate is in the mid 2% area, almost two percentage points lower than current policy. The Federal Reserve has been entrusted with the important goal of promoting price stability for the good of all American households and businesses.And I am committed to bringing inflation sustainably back to 2%. However, leading policy restrictive by such a large degree brings s ...

New Federal Reserve official Stephen Miran argued in his first major speech that U.S. interest rates are far too high and risk †unnecessary layoffs and higher unemployment†if not reduced substantially. ...

This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Federal Reserve Governor Stephen Miran on Monday dismissed the risk of tariff-induced inflation and called for two, half-percentage-point cuts to the main interest rate next quarter to avert higher unemployment. Tariff revenues, tax policy and a crackdown on immigration have likely reduced the so-called neutral rate of interest — or the level that neither spur ...

By Howard Schneider and Michael S. Derby WASHINGTON (Reuters) -New Federal Reserve Governor Stephen Miran said on Monday that the Fed is misreading how tight it has set monetary policy and will put the job market at risk without aggressive rate cuts, a view countered in remarks by three of his colleagues who feel the central bank needs to remain cautious about inflation. Miran, a week into his new job on leave from the Trump administration, told the Economic Club of New York he feels the central bank has ...

Core Points - The Federal Open Market Committee (FOMC) lowered the federal funds rate by a quarter point, bringing it to a range of 4% to 4.25% [1] - The FOMC's dot-plot indicates expectations for future rate trends, with members anticipating two more cuts in 2025 and one in 2026, differing from market expectations [6] - Fed Chair Jerome Powell described the rate cut as a "risk management cut" to hedge against potential economic slowdown [5][7] Economic Context - The Fed is facing challenges with its dual mandate of stable prices and maximum employment, as unemployment has increased and inflation is rising above the 2% target [4] - The impact of President Trump's tariffs on inflation remains uncertain, complicating the Fed's decision-making process [4] Market Reactions - Following the FOMC meeting, the stock market experienced volatility, with questions about whether the S&P 500 index will reach 7,000 or if it is a "sell-the-news" event [2] - The stock market has been anticipating interest rate cuts, which have contributed to the rise in the S&P 500 index [7]

As hard as higher prices are to swallow for many households, rising unemployment is the greater risk right now, @conorsen says (via @opinion) https://t.co/uAyaigEnir ...

Group 1 - The Reserve Bank of Australia (RBA) is expected to maintain the interest rate at 3.6% during the upcoming meeting, following three rate cuts since February this year [1][2] - Inflation has significantly decreased, and the labor market is nearing full employment, although there has been a slight increase in the unemployment rate [1][2] - The RBA has made substantial progress in reducing inflation, but aims to ensure that inflation remains sustainably within the target range [1] Group 2 - The Australian economy has shown signs of expansion, driven by a recovery in private demand, with economic activity growth accelerating [2] - The unemployment rate in Australia remained stable at 4.2% in August, indicating a resilient labor market despite some recent slowdowns in hiring activity [2] - Global uncertainties, including protectionist policies and geopolitical tensions, have not led to the worst-case scenarios anticipated by RBA officials [2]

We start with the big question for Global Wall Street this week, as the Fed issued its long-awaited decision and summary of economic projections. Our special contributor, Larry Summers of Harvard, takes us through what we learned. - It wasn't far off what the market was expecting or I was expecting.I was glad to see Jay lean into all the uncertainties in the moment--the uncertainties about inflation, the uncertainties about future policy, the uncertainties about unemployment, the uncertainties about the pol ...

Worries about unemployment and foreign domination are understandable. Yet India stands to gain far more by embracing AI than it will lose https://t.co/KV9HIeHQaZ ...

Economic Overview - Canadian GDP data for July and flash estimates for August will provide insights into the economic recovery after a 1.6% contraction from April to June due to the US tariff war [1] - The US economy shows early signs of recovery, with August spending data expected to indicate brisk consumer spending despite tepid income growth [2] Federal Reserve Insights - Fed Chair Jerome Powell indicated a cooling labor market as a reason for the first interest rate cut of the year, while remaining vigilant on inflation amid ongoing tariff impacts [4] - A report is anticipated to show a slower growth rate in the personal consumption expenditures price index, providing the Fed some leeway to address labor market weaknesses [5] Central Bank Activities - Bank of Canada Governor Tiff Macklem will discuss trade upheaval's effects on inflation and rates, while Statistics Canada will release population estimates amid post-pandemic immigration challenges [6] - Several central banks, including those in Sweden, Switzerland, and Hungary, are expected to maintain current rates, while Mexico and Nigeria are likely to implement cuts [7] Global Economic Indicators - Flash purchasing manager indexes (PMIs) in Asia and Europe will be closely monitored, with key readings from Australia and India expected to show service sector momentum [9] - Japan's midweek PMIs and retail sales data will provide insights into household spending, critical for the Bank of Japan's policy discussions [10] China Economic Data - China's August industrial profits will be reported, assessing corporate earnings stability after months of deflationary pressure, with government spending growth slowing [11] Latin America Economic Developments - Brazil's central bank will release minutes from its recent rate-setting meeting, maintaining a key rate of 15% amid high inflation [19] - Mexico is expected to continue its streak of rate cuts, with analysts anticipating a reduction to 7.5% as inflation remains within the central bank's tolerance range [22][23]