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'Exuberant spending' could follow pandemic, Powell says
Washington (AFP) - The United States could see a boost of "exuberant spending" after the pandemic that causes price increases, but that may not lead to a spike in inflation, Federal Reserve Chair Jerome Powell said on Thursday. "As the pandemic recedes and we see potentially a strong wave of spending as people return to their normal lives and begin consuming various services, there could be quite exuberant spending and we could see some upward pressure on prices," Powell said during a talk hosted by Princeton University. The world's largest economy has seen little inflation as it struggles wit...
AFP
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Fed report shows mixed picture of tepid US recovery
Washington (AFP) - Some segments of the US economy showed promising signs of rebounding from pandemic damage, but the picture remains decidedly mixed amid the uptick in Covid-19 infections, according to a Federal Reserve report Wednesday. Most regions of the country reported "economic activity increased modestly," and employment rose albeit slowly, as housing sales remained strong and manufacturing stayed on an upward trajectory, the central bank said in its "beige book" survey of economic conditions. The world's largest economy posted a record economic collapse of 31.4 percent in the April-Ju...
AFP
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Congress nears US spending deal, Fed more upbeat on outlook
Washington (AFP) - Congressional leaders on Wednesday said they were nearing a long-awaited agreement on a stimulus package for the US economy as the Federal Reserve cautioned that the economic outlook remains uncertain. A government relief package to aid struggling businesses and jobless workers is seen as essential in getting the world's largest economy back on its feet amid a resurgence of Covid-19 infections, even as new vaccines offer hope that life can return to normal. "The case for fiscal policy right now is very strong. I think that is widely understood," Fed Chair Jerome Powell told ...
AFP
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Congress nears US spending deal with Fed to weigh in on economy
Washington (AFP) - Congressional leaders on Wednesday said they were nearing a long-awaited agreement on a stimulus package for the US economy, while the Federal Reserve is set to provide updated forecasts that could show renewed optimism for the months ahead. A federal relief package to aid struggling business and jobless workers is seen as essential in getting the world's largest economy back on its feet even as vaccines against Covid-19 are rolled out, and would also ease the pressure on the central bank, which has limited tools to help the economy. "We made major headway toward hammering o...
AFP
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Fed opens policy final 2020 meeting amid uncertain economy
Washington (AFP) - US central bankers on Tuesday opened their final policy meeting of the year to review how best to support the economy as the Covid-19 vaccine rollout gets underway. But with the benchmark lending rate already at zero, there is little left for the Federal Reserve to do, absent an agreement in Congress on a new federal relief package to help ailing businesses and unemployed workers. At most, economists say officials in the policy-setting Federal Open Markets Committee (FOMC) could provide more information on potentially increasing the pace of bond purchases above the current $...
AFP
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Fed sees more signs activity slowing as optimism wanes
Washington (AFP) - More US regions saw economic activity stall or slow in November as Covid-19 cases surged, and businesses were less upbeat about their prospects, the Federal Reserve said Wednesday.The US is enduring the world's largest coronavirus outbreak, and cases have spiked above the worst days of the spring, forcing authorities in many regions to reimpose restrictions on businesses.The Fed's "beige book" survey of economic conditions said four of 12 regions saw little or no growth, while four others saw activity begin to dip last month.Even in some of the regions reporting growth, acti...
AFP
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US economic suffering may rise without stimulus: Fed minutes
Washington (AFP) - Officials at the Federal Reserve feared the US economy was on a course for renewed pain without Congress approving more stimulus to help its recovery from the pandemic, according to minutes of the central bank's latest policy meeting released Wednesday.Members of the Federal Open Market Committee (FOMC) also considered future changes in its strategy of buying Treasury assets and mortgage-backed securities, the minutes from the November 4-5 meeting said.US central bankers including Fed Chair Jerome Powell have been gently prodding Washington lawmakers for more stimulus spendi...
AFP
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Fed's Powell: More stimulus needed to help US economy
Washington (AFP) - The trajectory of Covid-19 remains key to the US recovery and until it is eradicated, more emergency spending will be "essential" to support the economy, Federal Reserve Chair Jerome Powell said Thursday.But with America's knife-edge election yet to be called, as state officials continue to tally ballots, the potential for a split government in Washington makes it less likely Congress will end months of gridlock and quickly approve another giant spending package to help workers and businesses.Democratic challenger Joe Biden appears well-positioned to unseat President Donald ...
AFP
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US election uncertainty turns focus on Fed
Washington (AFP) - With America's knife-edge election yet to be called, and the Covid-19 pandemic surging across the nation, analysts will be watching the Federal Reserve on Thursday for signs of whether it may step in again to help the US economy survive the coronavirus downturn.As state officials continue to tally the ballots, Democratic challenger Joe Biden appears well-positioned to unseat President Donald Trump, but with Republicans poised to retain control of the Senate, it has become less likely Congress will end months of gridlock and approve another giant spending package to help work...
AFP
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Eyes turn to Fed as US presidency remains in limbo
Washington (AFP) - With no clear winner in the US presidential election and hopes for more economic stimulus in limbo, all eyes will be on the Federal Reserve's policy meeting beginning Wednesday for signs of whether the central bank will step up and do more.Fed Chair Jerome Powell has been increasingly vocal in his calls for Washington to do more to help support the economy's recovery from the coronavirus pandemic, but has also said the central bank can deploy more of its monetary arsenal to prevent a worse downturn.The Fed's rate-setting Federal Open Market Committee (FOMC) opened its two-da...
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