Fed Raises Rates by 0.75 Percentage Point, Largest Increase Since 1994

The Federal Reserve approved the largest interest-rate increase since 1994 and signaled it would continue lifting rates this year at the most rapid pace in decades to fight inflation that is running at a 40-year high. Officials agreed to a 0.75-percentage-point rate rise at their two-day policy meeting that concluded Wednesday, which will increase the … Read more

Fed Likely to Consider 0.75-Percentage-Point Rate Rise This Week

A string of troubling inflation reports in recent days is likely to lead Federal Reserve officials to consider surprising markets with a larger-than-expected 0.75-percentage-point interest-rate increase at their meeting this week. Before officials began their premeeting quiet period on June 4, they had signaled they were prepared to raise interest rates by a half percentage … Read more

Inflation Pickup Complicates Fed Outlook Beyond June Meeting

Two bad inflation reports on Friday are likely to lead more Federal Reserve officials to support plans to raise interest rates by at least another 2 percentage points this year, a slightly faster pace than some had envisioned recently. The latest data also raised questions over whether the central bank would change its tactics as … Read more

Powell’s Opinions on Inflation Matter, Not Biden’s

One of the reasons inflation got out of control in the 1970s is that policy makers had heterodox theories about its cause, such as powerful corporations and unions. You can hear echoes today when President Biden proposes combating inflation through toughened antitrust enforcement, higher corporate taxes and more domestic production. These factors aren’t why inflation … Read more

May Jobs Report Keeps Fed on Track for Half-Point Interest-Rate Rises

The strong employment figures released Friday keep the Federal Reserve firmly on track to raise interest rates by a half-percentage point at its meeting in two weeks and again in late July to cool high inflation. Employers added 390,000 jobs in May, the Labor Department said Friday. The unemployment rate held steady at 3.6% as … Read more

Treasury Secretary Yellen Says She Was Wrong About Inflation

Treasury Secretary Janet Yellen said Tuesday her inflation projections were wrong in statements she made last year as consumer prices began a surge to their highest level in decades. “I think I was wrong then about the path that inflation would take,” Ms. Yellen said in a CNN interview Tuesday evening. “There have been unanticipated … Read more

Biden, Fed’s Jerome Powell Meet With Inflation at Its Highest in 40 Years

President Biden met at the White House Tuesday afternoon with Federal Reserve Chairman Jerome Powell as his administration takes more steps to signal urgency to fight high inflation. The meeting also highlights, to a significant extent, how much the White House is relying on outside forces to help combat rising prices. Administration officials earlier in … Read more

Biden to Meet With Fed’s Powell to Discuss Economy

WASHINGTON—President Biden will meet with Federal Reserve Chairman Jerome Powell on Tuesday to discuss the state of the U.S. and global economy, the White House said late Sunday, as the central bank races to withdraw stimulus amid the worst inflation in 40 years. Mr. Biden selected Mr. Powell to serve a second four-year term leading … Read more

WSJ News Exclusive | Powell Says Fed Has Resolve to Bring U.S. Inflation Down

Federal Reserve Chairman Jerome Powell said the central bank’s resolve in combating the highest inflation in 40 years shouldn’t be questioned, even if it requires pushing up unemployment. “Restoring price stability is a nonnegotiable need. It is something we have to do,” Mr. Powell said in an interview Tuesday during The Wall Street Journal’s Future … Read more

Senate Confirms Jerome Powell to Second Term Leading Federal Reserve

Mr. Powell’s nomination, approved Thursday on an 80-19 vote, has been on track for months to win bipartisan approval despite unease over inflation and aggressive interest-rate increases that the Fed has urgently commenced to cool price pressures. Separately, Mr. Powell said Thursday the Fed was prepared to act aggressively to bring down inflation to its … Read more