New York Fed: Bank liquidity may be tighter than expected, with policy implications

Nov. 18 (Reuters) – The way the banking system manages its cash suggests that the financial system may not be as fluid as many now understand it, and that could have implications for how the Federal Reserve manages the size of its balance sheet, a paper from the Reserve Bank said. New York Fed on … Read more

The Fed raised interest rates by 50 basis points, but the peak interest rate could be higher

BENGALURU (Reuters) – The Federal Reserve will cut back in December to raise interest rates by 50 basis points, but economists polled by Reuters say a longer period for US central bank tightening and higher rate hikes are the greatest. Risks to the current outlook. US consumer inflation unexpectedly fell below 8% last month, reinforcing … Read more

The Fed made a ‘big mistake’ and could push the economy into the ‘Great Depression’ – Arch Cathy Wood

(Kitco News) The Fed is ignoring signs of deflation in the economy. Cathy Wood, chief executive of Ark Invest, said steep increases in interest rates could push the economy into something like a Great Depression. The deflationary signals are already strong, and the setup looks similar to the 1920s a hundred years ago. “Before the … Read more

Economy Neither boom, nor corruption, Democrats’ dogs in the US midterm elections

WASHINGTON (Reuters) – Household cash is near record levels in the United States, and consumers are using it to fill up restaurants, planes and buy new cars. Jobs are there to take it. Net wealth is 30% higher than it was before the pandemic, and even more so for those in the bottom half. People … Read more

Federal Reserve officials stare at the markets, say inflation is the focus

Register now to get free unlimited access to Reuters.com Register WASHINGTON (Reuters) – Federal Reserve officials on Monday shrugged off heightened volatility in global markets from falling U.S. stocks to currency turmoil abroad and said their priority remained controlling domestic inflation. “There are interactions out there,” said Loretta Meester, president of the Federal Reserve Bank … Read more