Federal Reserve Bank of Chicago

COVID-19 will have a lasting impact on economic prosperity, said Federal Reserve Bank of Chicago President Charles Evans.

With the Federal Reserve bringing the target rate down to the zero lower bound, communication takes on a vital role, and, if used properly, can enhance Fed actions.

It’s too soon to judge the potential impact of the coronavirus outbreak on the U.S. economy or consider a monetary policy response, Chicago Fed President Charles Evans said.

Growth in Texas factory activity accelerated in February while the Chicago Fed National Activity Index pointed to an uptick in economic growth in January.

While members of the Federal Open Market Committee believe monetary policy is in a good place, several factors have the power to change that.

President Trump’s New Year’s Eve announcement that he will sign a phase one trade deal with China will offer some stability to those hurt most by the trade war and should allow the Federal Reserve to keep monetary policy accommodative, according to analysts.

New home sales rose to 719,000 in November, from a downwardly revised 710,000 pace in October, first reported as a 733,000 pace, the Commerce Department said Monday.

The manufacturing sector and construction spending came in weaker than expected, though probably not bad enough for the Federal Reserve to care.

Analysts are not convinced the Fed's mid-cycle adjustment will deliver the elusive soft landing.

Nonfarm productivity slipped, the Labor Department reported Wednesday, a day when comments from Fed presidents suggested cuts are done for now.

While the economy continues to expand “at a slight to modest pace,” those surveyed lowered their outlooks for growth over the coming year, according to the Fed's Beige Book.

Interest rates should be less than 1.5%, not the current 1.75% to 2%, according to Federal Reserve Bank of Minneapolis President Neel Kashkari.

The U.S. economy is growing slower than it has in the past couple of years, and conditions may get worse in the next few quarters, according to Federal Reserve Bank of St. Louis President James Bullard.

While some Federal Reserve Bank presidents offered hawkish remarks at the Jackson Hole symposium, the markets still expect a 25 basis point cut, and analysts agree.

The economy was chugging along at about the same pace from mid-May through early July as it had in the previous period, according to the Federal Reserve’s Beige Book.

Despite “solid” growth in gross domestic product in the past year, it will be difficult for GDP to rise more than 1.5% to 1.75% on a longer run basis.

Under the right conditions, Federal Reserve Board Chair Jerome Powell hinted he would be willing to consider lowering interest rates.

Two Federal Reserve Bank presidents discussed how trade policy is effecting the economy; neither seemed ready to cut interest rates.

Change is always difficult, and the Federal Reserve’s attempt to find a better monetary policy framework is no exception.

The April employment report topped estimates for jobs created, while the jobless rate fell to a 49-year low; wage increases missed projections.