Trump’s appointment, Stephen Miran, wanted a quarter-point cut.
Federal Reserve FOMC statement
Please consider the Federal Reserve FOMC statement
Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has been little changed in recent months. Inflation remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the U.S. economy are uncertain. The Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
There is little news in the statement except perhaps Miran only wanted a quarter-point cut. Will Trump attack that?
Also there was a one percent chance of a hike just ahead of the meeting. All the way through December there is a slim chance of a hike.
The PPI news today knocked the odds of rate cut back a little bit across the board.
For discussion, please see Producer Price Index Jumps 0.7 percent, Third Straight Month of Big Increases
Here is a live link to the Fed Press Conference coming up.
The money stock (& DFI credit, where: loans + investments = deposits), can never be managed by any attempt to control the cost of credit, R *, or Wicksellian: equilibrium/differential real rates, [or thru a series of temporary stair stepping or cascading pegging of policy rates on “eligible collateral”; or thru “spreads”, “floors”, “ceilings”, “corridors”, “brackets”, IOeR, or BOJ-yield curve control, YCC, of JGBs, etc.].
The effect of these operations on interest rates (now via the remuneration rate), is indirect, varies widely over time, and in magnitude. What the net expansion of money will be, as a consequence of a given injection of additional reserves, nobody knows until long after the fact. The consequence is a delayed, remote, & approximate control over the lending and money-creating capacity of the payment’s system.
thank goodness not to worry just carry onPowell says the global oil crisis may have only temporary economic effects
https://www.cnn.com/2026/03/18/economy/fed-march-rates-decision
In other news, I may elope with Zendaya.
45,800 gets hit on the DJIA, then look out below
If inflation starts going up and there is no recession. Stock markets will go up too. The bond markets will get killed.
And if the bond market gets killed, then rates will provide a competitive return to equities…wax on, wax off
Once increased fuel costs make their way thru the economy, we are looking at rate increases.
Maybe not if it stagnates the economy. Burn less hydrocarbons = may need to lower interest rates to jump start the economyy.
Interest is the price of credit. The price of money is the reciprocal of the price level. Reserves are expanding too fast.
Well, at least nobody mentioned Epstein in the meeting.
The mood was more in tune with ‘death and destruction, followed by privation’.
We’re in clown world now. If they had flipped a coin to decide, I would not be able to find fault with their method.
Don’t worry…Fed’s got this…like a workfare program for Econ PhD’s
Meet the ResearchersThe Federal Reserve Board employs more than 500 researchers, including more than 400 Ph.D. economists, who represent an exceptionally diverse range of interests and specific areas of expertise. Board researchers conduct cutting edge research, produce numerous working papers and notes, and are among the leading contributors at professional meetings and in major journals. Our researchers also produce a wide variety of economic analyses and forecasts for the Board of Governors and the Federal Open Market Committee.
FEDERAL RESERVE SYSTEM Salaries
Highest salary in FEDERAL RESERVE SYSTEM in 2024 was $269,000. FEDERAL RESERVE SYSTEM average salary in 2024 was $184,279. It was 82% higher than the state average. FEDERAL RESERVE SYSTEM median salary in 2024 was $185,654. It was 124% higher than the state median. Number of employees at FEDERAL RESERVE SYSTEM in year 2024 was 1,678.
The sad thing about that, is most of the people making that money aren’t living large. Wherever that kind money gets made gets expensive real quick.
Why are you comparing salaries at a semi-private financial instution to run of the mill governement workers? Maybe try comparing to typical Wall St.
Powell appears to me to be waffling on future rates (probably taco pressure).
No waffling, he is toughing it out:
saying he’ll stay at the Fed…
until Jeanine Pirro’s probe is ‘well and truly over’”.
A Republican senator is effectively blocking confirmation of President Donald Trump’s nominee, Kevin Warsh, until the DOJ drops its investigation.
The Fed slapped Trump in the face. 11 to 1 vote to hold. Lol!
“Its Trump turtles all the way down and inflation all the way up!”
Stephen
MoronMiran would vote for a 25bps cut in the face of obvious stagflation, so his vote is basically Trump casting the vote for him. Self-neutering is a thing in government.A slap? Really, do we need to resort to violent metaphors?
They teabagged him. Gently.