by Conor Sen The key economic question for 2024 is how to think about the interest rate cuts we’re likely to get from the Federal Reserve. Are they good news for the economy as borrowers catch a break, or a sign of impending recession as they were in 2001 and 2007? There’s still ...
Last week, the Federal Reserve did the right thing by leaving well enough alone, keeping the benchmark interest rate at about 5.4%. With the acute pressure that the board and Chair Jay Powell in particular have faced in the past several months, we're glad they've had the wisdom to know when ...
by Matthew Yglesias A string of positive economic news — slowing inflation, an upward revision in gross domestic product, continued strength in the job market, signs of a nascent surge in factory construction — has the Biden administration going all out to define “Bidenomics” ...
Powell shows a level of caution that should continue to avoid recession After 10 consecutive interest rate hikes meant to squeeze down inflation, the Federal Reserve last Wednesday held steady at a benchmark rate of between 5% and 5.25%, indicating that the aggressive intervention has ...
by Conor Sen We’ve been watching slumps ripple through various parts of the economy over the past 18 months: technology startups and stocks, regional banks and growing concern about commercial real estate. Yet we’re still waiting for the wider labor market to feel the ...
by Simon Johnson Do we have a banking crisis in the United States or don’t we? We certainly have some of the symptoms, including two prominent banks that just failed and downward pressure this week on the share prices of other midsize banks. Yet on Wednesday, the Federal ...