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US Federal Reserve leaves interest rates unchanged

The US Federal Reserve held interest rates steady last night and signaled it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings that could make those rate cuts a while in coming.

Business • 02 May 24

The PCE price index is one of the inflation measures tracked by the US Fed for its 2% target

US inflation rises in line with expectations in March

US inflation rose moderately in March, but that is unlikely to change financial markets' expectations that the Federal Reserve will hold off cutting interest rates until September.

Business • 26 Apr 24

The US economy - the world's biggest economy - grew 1.6% in the first quarter, missing analysts' expectations of a larger 2.4% rise

US economic growth slows significantly in first quarter

The US economy cooled markedly in the first three months this year, expanding less than anticipated as consumer spending and exports decelerated, according to government data released today.

Business • 25 Apr 24

ECB officials are sticking to plans to cut interest rates multiple times in 2024

ECB governors stick to plan for multiple rate cuts

European Central Bank officials are sticking to plans to cut interest rates multiple times this year, even as higher US inflation delays a pivot to looser policy by the US Federal Reserve and tensions in the Middle East keep oil prices high.

Business • 22 Apr 24

Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 212,000 for the week ended April 13, the US Labor Department said

US weekly jobless claims remain at low level

The number of Americans filing new claims for unemployment benefits was unchanged at a low level last week, pointing to continued labour market strength.

Business • 18 Apr 24

Inflation fight may take longer than expected - Fed chief

The US Federal Reserve's ongoing fight against inflation could take "longer than expected," the head of the US central bank said last night, further paring back the chances of early rate cuts.

Business • 17 Apr 24

US Fed officials raised inflation concerns - minutes

US Federal Reserve officials raised concerns at their March interest rate meeting about the recent "broad-based" rise in inflation, but still said they expected cuts to start this year, according to minutes of the meeting published last night.

Business • 11 Apr 24

The US consumer price index rose 0.4% last month after advancing by the same margin in February, new figure show today

US consumer prices rise more than expected in March

US consumer prices increased more than expected in March amid rises in the costs of gasoline and shelter, casting further doubt on whether the Federal Reserve will start cutting interest rates in June.

Business • 10 Apr 24

Inflation slowed to even nearer the ECB's 2% target in March

A final hurdle: Five questions for the ECB this week

Traders betting the European Central Bank is all but certain to start cutting interest rates in June just need a green light from policymakers on Thursday that the coast is clear.

Business • 08 Apr 24

Powell sticks with Fed's cautious rate-cut strategy

US Federal Reserve officials, including chief Jerome Powell, continues to focus on the need for more debate and data before interest rates are cut, a move financial markets expect to occur in June.

Business • 04 Apr 24

Euro area inflation has tumbled and economic growth stalled, shifting the debate to how quickly and how far the ECB should move in reversing a record string of rate increases

ECB's Holzmann says warming to June rate cut

The European Central Bank could start cutting interest rates in June as inflation may fall quicker than expected but should not get too far ahead of its US counterpart, as that diminishes the potency of easing, Austrian policymaker Robert Holzmann said.

Business • 03 Apr 24

US GDP increased at a 3.4% annualised rate in the fourth quarter of 2023, revised up from the previously reported 3.2% pace

US fourth-quarter growth revised up to 3.4%

The US economy grew faster than previously estimated in the fourth quarter, lifted by strong consumer spending and business investment in nonresidential structures like factories.

Business • 28 Mar 24

US Federal Reserve sees three rate cuts in 2024

The US Federal Reserve held interest rates steady today, but policymakers indicated they still expect to reduce them by three-quarters of a percentage point by the end of 2024 despite stodgier expected progress towards its 2% inflation target.

Business • 21 Mar 24

US non-farm payrolls increased by 275,000 jobs last month, the latest figures show today

US job growth accelerates in February, jobless rate up

US job growth accelerated in February, but a rise in the unemployment rate and moderation in wage gains kept on the table an anticipated interest rate cut in June from the Federal Reserve.

Business • 08 Mar 24

US Fed's progress against inflation not assured - Powell

The US Federal Reserve's progress in bringing down inflation is "not assured," the chair of the bank said today ahead of two days of hearings in Washington.

Business • 06 Mar 24

The US personal consumption expenditures (PCE) price index rose 0.3% last month, new figures show today

US inflation increases in line with expectations in Janua

US prices picked up in January, but the annual increase in inflation was the smallest in nearly three years, keeping a June interest rate cut from the Federal Reserve on the table.

Business • 29 Feb 24

US GDP growth was revised to an annual rate of 3.2% in the final three months of 2023, from an initial estimate of 3.3% released last month

US fourth quarter GDP growth revised slightly lower

US economic growth was slightly weaker than previously estimated in the fourth quarter last year, according to government data released today, due mainly to a downward revision to business investment.

Business • 28 Feb 24

US Federal Reserve policymakers voted to keep rates at a 23 year high at its January meeting

Fed divided on risk of cutting rates too soon - minutes

The US Federal Reserve was divided in January over the risks of cutting interest rates too soon or too late, although most members voiced concern about moving early, according to minutes of the meeting published last night.

Business • 22 Feb 24

The US consumer price index increased 0.3% last month after gaining 0.2% in December, new figures show today

US consumer prices rise more than expected in January

US consumer prices increased more than expected in January amid rises in the costs of housing and healthcare, but the pick-up in inflation likely does not change expectations that the Federal Reserve will start cutting interest rates in the first half of this year.

Business • 13 Feb 24

German investor morale improves in February - ZEW index

German investor morale improved more than expected in February on hopes of interest rate cuts, despite a dire assessment of current conditions, the ZEW economic research institute said today.

Business • 13 Feb 24

The US consumer price index rose 0.2% in December instead of 0.3% as reported last month

US December consumer prices revised lower

US monthly consumer prices rose less than initially estimated in December, revised government data showed today.

Business • 09 Feb 24

US Fed holds key rate steady, March cut now unlikely

The US Federal Reserve last night voted to leave interest rates unchanged for the fourth meeting in a row, while indicating it was moving toward future cuts - but probably not before May at the earliest.

Business • 01 Feb 24

Growth among leading economies is not forecast to be consistent, with relative strength in the US and India, and sluggishness expected from the euro zone and China

Global economy outlook at odds with rate cut bets: poll

Global growth is set to stay resilient this year and only pick up pace a bit in 2025, according to a Reuters poll of economists, a stable outlook at odds with still-relatively aggressive interest rate cut bets in financial markets.

Business • 26 Jan 24

Gross domestic product in the last quarter increased at a 3.3% annualised rate.

US economy grew faster than expected in fourth quarter

The US economy grew faster than expected in the fourth quarter amid strong consumer spending, and defied dire predictions of a recession in 2023 after the Federal Reserve aggressively raised interest rates, with growth for the full year coming in at 2.5%.

Business • 25 Jan 24

The US Federal Reserve has penciled in up to three rate cuts in 2024

US interest rates likely to stay high 'for some time'

US Federal Reserve officials expect interest rates will need to remain high "for some time" to tackle stubborn inflation, according to minutes of the most recent rate decision published last night.

Business • 04 Jan 24