Latest news with #policymeeting
Bloomberg
08-08-2025
- Business
- Bloomberg
BOJ May Exit Wait-and-See Mode by End of This Year, Summary Says
A Bank of Japan board member hinted that the BOJ may be moving toward another rate hike by the end of the year depending on the impact from US tariffs, according to a summary of opinions from the bank's policy meeting last week. It will take at least two to three months to assess the tariff effects, but if the US economy manages to withstand the impact of its own tariff policies more than expected, it would also limit the damage to the Japanese economy, the board member said.
Reuters
05-08-2025
- Business
- Reuters
Some in BOJ saw scope to resume rate hikes if trade friction eases, June minutes show
TOKYO, Aug 5 (Reuters) - A few Bank of Japan board members said the central bank would consider resuming interest rate increases if trade friction de-escalates, minutes of its June policy meeting showed on Tuesday. "Given high uncertainties, the BOJ would likely pause rate hikes for the time being. But it also must respond flexibly and nimbly, and return to a rate-hike phase depending on U.S. policy developments," one member was quoted as saying.
Wall Street Journal
01-08-2025
- Business
- Wall Street Journal
Cooling Job Market Opens Door to September Cut Despite Inflation Jitters
The July jobs report could give Federal Reserve officials a sense of déjà vu. Last year, officials decided against cutting interest rates at their July policy meeting, but an employment report two days later suggested the labor market wasn't as strong as it looked. Officials made up for it by cutting rates by a half-percentage point, larger than the traditional quarter point increment, at their subsequent meeting in September.
Yahoo
30-07-2025
- Business
- Yahoo
Fed policy decision generates most governor dissents since 1993
By Michael S. Derby (Reuters) -The Federal Reserve's decision to hold interest rates steady following the end of a two-day policy meeting on Wednesday generated the largest number of dissenting votes by governors at the U.S. central bank in just over three decades. Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman cast votes against the decision to hold the central bank's benchmark overnight interest rate unchanged in the 4.25%-4.50% range, preferring instead to reduce it by a quarter percentage point. That marked the first time two members of the Washington-based Board of Governors formally dissented on a decision by the policy-setting Federal Open Market Committee since December 1993, according to data from the St. Louis Fed. Any level of formal opposition by Fed governors is relatively rare, and most FOMC dissenting votes stem from disagreements held by regional Fed bank presidents. The last time a governor dissented was at the meeting last September, when Bowman wanted a smaller rate cut than her colleagues favored. The last time two regional Fed presidents voted against the FOMC consensus was in October 2019. Broadly speaking, dissenting votes on the FOMC are uncommon. Until Wednesday, no Fed meeting this year generated formal opposition, with only two dissents occurring in 2024 and none in 2023. The latest dissents were not a surprise, as both Waller and Bowman had signaled ahead of the policy meeting their openness to easing rates. In a speech on July 17, Waller justified his desire to lower short-term borrowing costs when he said "the economy is still growing, but its momentum has slowed significantly, and the risks to the FOMC's employment mandate have increased." Bowman, in remarks on June 23, brushed off worries that President Donald Trump's import tariffs would drive up inflation and said as long as inflation pressures remained contained, she believed then that "it was time to consider" lowering rates at the July 29-30 meeting. Trump has excoriated Fed Chair Jerome Powell for failing to heed the White House's demands that interest rates be cut immediately. Both Waller and Bowman were appointed to the Fed's board by the current president. In contrast to Waller and Bowman, most Fed policymakers have taken a wait-and-see approach to the economic and monetary policy outlook. While inflation pressures have eased, many officials are worried Trump's tariffs will drive up price pressures over time, which argues against easing policy. Waller, who has been mentioned as a possible successor to Powell when the Fed chief's term expires next May, has contended in a series of public remarks that any rise in inflation due to tariffs will be a one-time hit that can be ignored by central bankers. He's become increasingly worried that the job market is stalling out and wants the Fed to ensure that doesn't happen. Dissenting votes on the Fed's policy-setting committee are mostly notable for showing the breadth of debate among central bankers, and Fed officials have said they are a sign that policymakers are not mired in groupthink, as some critics contend. Dissents also tend to increase during challenging and uncertain points for the economy. Sign in to access your portfolio
CNN
30-07-2025
- Business
- CNN
Fed meets to review rates as Trump ramps up his attacks
Update: Date: 5 min ago Title: This Fed meeting could be the most divided in decades Content: For the past 32 years, the Federal Reserve's decisions on interest rates have almost always been unanimous, with the occasional dissent from a lone policymaker. That might not be the case this week. The Fed is expected to keep rates on hold at the conclusion of its two-day policy meeting on Wednesday — its fifth consecutive pause. But it could draw dissents from two members of the central bank's Board of Governors: Fed Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman. If Waller and Bowman dissent, as many analysts expect, it would be the first time two Fed governors have simultaneously done so since 1993. Waller and Bowman have said publicly that the Fed should put aside its concerns that President Donald Trump's tariffs could boost inflation, and the central bank should resume rate cuts this month to keep the labor market intact. Further complicating the issue: Another Fed governor, Adriana Kugler, will not participate this week, citing a personal matter. Trump has said he intends to name a new leader for the central bank when Fed Chair Jerome Powell's term ends in May 2026. Waller and Bowman are thought to be strong contenders for the role, along with Kevin Hassett, head of the National Economic Council; and former Fed governor Kevin Warsh. Read more here. Update: Date: 5 min ago Title: Here's what Wall Street expects from the Fed Content: Investors overwhelmingly expect the Federal Reserve to hold rates steady this afternoon. Markets will be focused on how Fed Chair Jerome Powell interprets the impact of tariffs, how many Fed board members dissent from the decision to hold rates steady and any signals for future rate cuts. Here's what investors are saying ahead of the Fed's decision: Update: Date: 3 min ago Title: Here's why the Fed hasn't cut interest rates this year Content: The Federal Reserve has held off on cutting interest rates this year, much to President Donald Trump's displeasure, for a variety of reasons. Here's what's been holding the central bank back: Update: Date: 5 min ago Title: Why Trump is calling for a jumbo rate cut Content: President Donald Trump has made it no secret: He wants interest rates to go down. But why is he so intent on that? When the Federal Reserve lowers its key rate, known as the federal funds rate, it tends to cause interest rates on a variety of loans to also go down. That includes the rates the government pays to borrow money, too. That's why Trump is fiercely advocating for lower rates. But lowering interest rates too quickly or by too much can invite higher inflation if it causes people to spend a lot more, giving companies a pathway to raise prices. That's why the Fed has been hesitant to lower rates, especially with Trump's tariff increases eventually expected to cause consumer goods prices to increase. For the time being, however, price increases have not been broad based. Read more here.
