Monetary policy

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.

A report from the Federal Reserve reported modest economic growth, a characterization two Federal Reserve Bank presidents seemed to agree with.

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.

Two Federal Reserve Bank presidents were positive about the economy in 2020, but offered a look at what worries them.

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.

Many investors are positioning for the late cycle, according to guest Robert Waldner Jr., CFA , chief strategist and head of macro research at Invesco. He points to the demise of the Phillips curve; the Fed thinking in "real" terms, and a gradual increase in yields on the long end. He also discusses the appeal to global clients of taxable municipals. John Hallacy hosts.

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.

Former Federal Reserve Chairman Ben Bernanke delivered what he called “a relatively upbeat” assessment of the U.S. central bank’s ability to fight the next recession.

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.

The Federal Reserve may have succeeded in thwarting major year-end turmoil in funding markets.