News

Fed should hold policy rate steady for 'some time,' Kugler says

Federal Reserve Governor Adriana Kugler on Thursday said she believes the U.S. central bank should leave its target for short-term borrowing costs in its current 4.25%-4.50% range, where it is exerting moderate restraint on the economy and on still-elevated inflation. Noting the net effect of new economic policies is highly uncertain and will depend on the specifics, Kugler told an audience at Georgetown University, "going forward I consider it is appropriate to hold the federal funds rate in place for some time, given the balance of risks that we face right now." The comment on her preferred policy rate path was not included in the initial published version of Kugler's remarks.

Fed's Kugler says inflation risks remain, cites economic policy uncertainty

Kugler said she supported the Fed's decision last month to hold short-term borrowing costs in their current 4.25%-4.50% range, a level she feels exerts moderate restraint on the economy. "I see this as appropriate, given that the downward risks to employment have diminished but upside risks to inflation remain," Kugler said in remarks prepared for delivery at Georgetown University. "The potential net effect of new economic policies also remains highly uncertain and will depend on the breadth, duration, reactions to, and, importantly, specifics of the measures adopted."

Oil Extends Gain With Focus on Supply Uncertainty, Weaker Dollar

(Bloomberg) -- Oil extended a string of marginal gains to settle above $72 a barrel amid uncertainty over global supplies and a slumping dollar that made commodities priced in the currency more attractive.Most Read from BloombergTrump to Halt NY Congestion Pricing by Terminating ApprovalAirbnb Billionaire Offers Pre-Fab Homes for LA Fire VictimsSorry, Kids: Disney’s New York Headquarters Is for Grown-UpsTrump Targets $128 Billion California High-Speed Rail ProjectChild Migrant Watchdog Gutted in

Fed's Barr, stepping down from regulatory post, warns against weaker bank rules

WASHINGTON (Reuters) -The Federal Reserve's top regulatory official cautioned Thursday against a weakening of bank rules and oversight that could make firms vulnerable to surprise shocks. Fed Vice Chair for Supervision Michael Barr, who is stepping down from the regulatory post at the end of February, cautioned against any push to significantly weaken existing bank rules and supervision, and urged watchdogs to complete international capital standards. In what is expected to be his final speech as the Fed's rules chief, Barr maintained that strong rules and robust capital requirements for banks are needed to guard against unforseen shocks.

Fed’s Musalem Sees Increased Risk of Inflation Stalling Above 2%

(Bloomberg) -- Federal Reserve Bank of St. Louis President Alberto Musalem said policy should remain “modestly restrictive” until it’s clear inflation is on track to the central bank’s 2% target, and that he sees increased risks that progress may stall or even reverse. Most Read from BloombergTrump to Halt NY Congestion Pricing by Terminating ApprovalAirbnb Billionaire Offers Pre-Fab Homes for LA Fire VictimsSorry, Kids: Disney’s New York Headquarters Is for Grown-UpsTrump Targets $128 Billion C

Higher egg prices drove up inflation, and Walmart grocery revenue

Higher egg prices, an issue U.S. President Donald Trump spoke about often during his election campaign last fall, boosted Walmart grocery revenue, the world's largest retailer said during its earnings briefing on Thursday. Walmart said its grocery revenue rose by mid-single digits in the quarter through January 31, and a Walmart earnings presentation showed that egg-price inflation was baked into that increase. Egg prices have been rising as bird flu, or avian influenza, has hammered egg production in chickens.