Federal Reserve News
The Daily Signal provides Federal Reserve news with reporting, analysis, and commentary on inflation, markets, and the impact of central banking.
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Jeanine Pirro Slams ‘Activist’ Judge for Blocking Subpoenas Against Fed Chair Powell
A federal judge on Friday blocked subpoenas issued by the Justice Department as part of its criminal investigation into Federal Reserve Chair Jerome Powell’s handling of renovations of the central bank’s Washington headquarters. U.S. Attorney for the District of Columbia Jeanine Pirro, an appointee of Republican President Donald Trump whose office is spearheading the investigation, promised…Daily Signal Staff -
Can President Remove Fed Official for Pre-Office Conduct? Court Weighs In.
Last week, the Supreme Court heard oral arguments in Trump v. Cook. This case came to the court on an expedited basis because in August of last year, President Donald Trump posted on social media a letter addressed to Lisa Cook, telling her, “Pursuant to my authority under Article II of the Constitution of the…Zack Smith -
Congress Erupts Over Fed Chair Investigation
Congress erupted after the Department of Justice announced a criminal investigation into Federal Reserve Chairman Jerome Powell over the $2.5 billion renovation of the Federal Reserve. Part of the investigation involves previous statements made to the Senate Banking Committee in June, in which Powell was accused of misrepresenting facts regarding government spending on the Federal…Pedro Rodriguez -
What the Fed Chair Candidates’ Backgrounds Reveal About If They’ll Cut Interest Rates
President Donald Trump recently told The Wall Street Journal he is favoring selecting either National Economic Council head Kevin Hassett or former Federal Reserve Governor Kevin Warsh for the next chair of the Federal Reserve. Trump has said he expects the next Fed chair to cut interest rates. How have the candidates under consideration approached interest rate cuts in…Elizabeth Troutman Mitchell -
BREAKING: Divided Fed Makes Money Decision Ahead of Christmas
Federal Reserve Chairman Jerome Powell announced the third interest rate cut of the year in a news conference Wednesday. “Today, the Federal Open Market Committee decided to lower our policy interest rate by a quarter percentage point,” Powell said. The rate cut brings the federal funds rate between 3.5% and 3.75%, following similar-sized rate cuts…Tyler O’Neil -
Biden Taps Fossil Fuel Industry Critic for Federal Reserve Post
President Joe Biden’s choice for the No. 2 post at the Federal Reserve Board has advocated for the central bank to use its “powerful role” to discourage investment in oil, gas, and coal companies and to try to boost alternative energy sources amid the “climate crisis.” On Friday, Biden announced the nomination of Sarah Bloom…Fred Lucas -
Democrat Senator Concedes Inflation ‘Is Real,’ Faults Supply Chain, Federal Reserve
Higher prices on everything from groceries to automobiles are increasingly common across the United States. It’s a phenomenon that’s becoming impossible to ignore. That’s what Sen. Mark Warner, D-Va., said in a recording of a Wednesday night teleconference obtained by The Daily Signal. He also said that the higher prices are the result of a…Jarrett Stepman -
Sen. Toomey: Federal Reserve ‘Stonewalling’ Transparency Requests Over New Racism Focus
The Federal Reserve has thus far refused to respond to requests for congressional oversight regarding what the Senate Banking Committee’s top Republican calls its “politically charged” focus on “racial justice,” social, and environmental policies. On Wednesday, Sen. Pat Toomey, R-Pa., suggested legal changes to make the often secretive bank more transparent. Toomey followed up on…Fred Lucas -
Why the Federal Reserve Has Done More Harm Than Good
If the Federal Reserve brought home a report card reflecting its performance since its creation in 1914, its parents would not be pleased. Its record for stability is among the worst in the developed world, and it has done little to fix the problems it was invented to address. Moreover, the Federal Reserve is far…Bill Walton -
Trump Taps Stephen Moore for Federal Reserve Board
President Donald Trump will name economist Stephen Moore, a visiting fellow at The Heritage Foundation and former Wall Street Journal economics writer, to the Federal Reserve Board to oversee the nation’s monetary policy. “I will be nominating Mr. Moore for the Fed,” Trump told reporters Friday at the Palm Beach International Airport. “You know who…Fred Lucas -
Why You’d Be Wrong in Thinking the Fed Just Raised Interest Rates
For the first time in seven years, the Federal Reserve has raised its target for the federal funds rate. Some news reports get this story right, but most repeat the standard line that the Fed has raised interest rates. This is wrong. The Fed does not set interest rates, and it’s more than just semantics….Norbert Michel -
Banks Should Not Be Forced to Buy ‘Stock’ in the Federal Reserve
A week ago, President Barack Obama signed a new highway funding bill that will effectively tax banks and raid the Federal Reserve to pay for new highway spending. That whole ordeal exposed the convenient fiction that the Federal Reserve needs capital. The truth is, however, that the Fed doesn’t need capital, since it can just…Norbert Michel -
Can Two Polar Opposite Senators Muzzle the Federal Reserve?
The Federal Reserve has injected trillions into the banking system since the 2008 crisis, and we’re still stuck in a low-growth economy. Yet rather than question the Fed’s overall mission and effectiveness, we’ve become obsessed with interest rates: Did the Fed make rates too low? Should it raise rates now or wait till December? If…Norbert Michel -
3 Reasons to Focus on Something Other Than the Fed’s Interest Rate Target
Stocks tumbled in several major markets earlier this week because, supposedly, investors were nervous about this weeks Fed meeting. The Fed has flirted with raising its interest rate target for months now, but mixed economic news keeps giving them cold feet. When it does finally raise its target rate, it will be the first time…Norbert Michel -
No, the Federal Reserve Cannot Set Interest Rates
As the Federal Reserve summer symposium in Jackson Hole, Wyo. begins, I thought I’d set the record straight. The Federal Reserve cannot just set interest rates. I’m not exactly sure how it happened, but there seems to be widespread acceptance of this idea (that the Federal Reserve can simply make interest rates whatever they want them…Norbert Michel -
The Federal Reserve Hasn’t Reduced Frequency of Recessions. Why Is It Necessary Again?
In two months the Federal Reserve Bank of Kansas City will hold its annual symposium in Jackson Hole, Wyoming. It is here that, for more than 30 years, “participants from across the globe gather … to discuss important policy issues of mutual interest.” Previous topics have included labor market dynamics and unconventional monetary policy, but this year’s theme is…Norbert Michel -
Federal Reserve Reforms Should Not Be a Partisan Issue
The Washington Post’s Robert Samuelson is the latest commentator to paint conservative critics of the Federal Reserve as dangerous and misinformed. Samuelson discounts auditing the Fed and imposing a monetary policy rule as merely ideological, but the truth is that he’s overly dismissive. These common sense reforms do have their share of scholarly support and…Norbert Michel -
House Republicans Attempt to Lift ‘Veil of Secrecy’ From Federal Reserve
Rep. Bill Huizenga, R-Mich., wants to lift the “veil of secrecy” he said obscures the dealings of the Federal Reserve. Would enhanced congressional oversight of the central bank’s decision-making help the economy? Or would it lead to counterproductive meddling? That was the question members mulled Thursday in a hearing Thursday before the House Financial Services…Natalie Johnson