FOMC

The Federal Reserve’s point person on financial regulation said the central bank is considering changes to its bank-supervision framework to enhance money-market liquidity.

The prevailing opinion is the Federal Reserve will note the downside risks caused by the virus, won’t cut rates in March, but bets are hedged for later in the year.

The U.S. central bank’s No. 2 official said it’s too early to determine whether the coronavirus outbreak in China will significantly affect the U.S. economy, which remains in a “good place.”

An economic slowdown was expected in 2019, and the data prove the prediction was correct. Now softening consumer spending could portend the need for the Federal Reserve to ease policy at some point.

Monetary policy is accommodative and will remain so this year, but with the Fed's framework review concluding, some analysts believe it will shift from a 2% symmetric inflation target to an average inflation target.

Despite tax-exempts being expensive, strong technicals are likely to extend into February.

The FOMC post-meeting statement was much like the previous one, with just a minor tweak, as the fed funds target was kept at a range of 1.50% to 1.75%.

Just when everyone thought there would be little drama at this week’s Federal Open Market Committee meeting, the coronavirus has infected the broader markets. Experts still say monetary policy will be immune for now.

While the fed funds rate target will remain at a range of 1.50% to 1.75% and there will be no new Summary of Economic Projections, the FOMC meeting may offer insight into areas that may become problematic and its thinking on the balance sheet, analysts suggest.

George Boyan, president of Leumi Investment Services, discusses negative interest rates, recession, and what challenges the Fed faces in the coming year. Gary Siegel hosts.

If Judy Shelton, who advocates for lower rates, wins confirmation to the Federal Reserve Board of Governors, President Trump may have his choice to replace Chairman Jerome Powell.

While the general feeling is the Federal Reserve will keep rates steady this year, not everyone is on board with that view.

Waller is more likely to be confirmed, but it is "almost impossible" to find a public figure supportive of Shelton's nomination, let alone her confirmation.

The Fed should hold rates and wait for the three 2019 cuts to work their way through the economy before deciding its next move, Federal Reserve Bank of Kansas City President Esther George said Tuesday.

Nonfarm payrolls gained a less-than-expected 145,000 in December, and the unemployment rate held at 3.5%. Slow wage growth suggests the economy will not overheat and the Fed can maintain rates.

While Fed officials repeated their contention that monetary policy is appropriate and rates can be held if the outlook remains as expected, the situation with Iran could cause preemptive cuts, one noted economist suggests.

The Federal Reserve averted a yearend liquidity crunch, but its work is not finished, analysts say.

While the impending signing of a phase one trade deal with China should help the manufacturing sector rebound, Boeing’s decision to halt manufacturing of its 737 MAX will be a short-term negative for the ISM index.

William Dudley, who used to oversee the Federal Reserve’s interaction with financial markets, said the central bank should introduce a long-discussed but never implemented tool to ensure U.S. cash markets remain calm.

The U.S. and the rest of the industrial world may have to resign themselves to an extended period of slow economic growth, subdued inflation and low interest rates. The trick will be in avoiding something even worse.