Economic news

The Federal Reserve's monetary policy group is expected to hold rates steady, but the chairman will face a litany of questions about the year ahead and on the inflationary impact of implications of the Trump administration's early policy moves.

Some reforms to the system might be necessary, but it would be unwise to eliminate a critical source of funding for banks across the country.

With the Federal Reserve touting a slower pace of easing, markets are expecting a longer pause. But Gov. Christopher Waller said the next interest rate reduction could come as soon as March because of inflation data.

The Labor Department estimates the economy added 256,000 jobs in December, indicating a resilient economy and labor market. For the Federal Reserve, which was already signaling a slowdown in rate cuts, the reading could justify holding rates steady.

Seen by many as a logical pick for the Federal Reserve's next vice chair for supervision, Gov. Michelle Bowman wants the institution to focus on safety and soundness issues, tailoring and transparency.

In a Wednesday morning speech, the Federal Reserve Gov. Christopher Waller said President-elect Donald Trump's nascent trade policy will likely lead to a one-time jump in prices rather than broader inflationary pressure. He also said he expects further interest rate cuts in 2025.

In their new book, "The New World Economy in 5 Trends," Koen De Leus and Philippe Gijsels predict a future in which neutral interest rates are higher, technology is transformative and the urgency of climate-change adaptation creates investment opportunities.

Banks are taking hits in the stock market as they use 2024 to restructure balance sheets and inflation slightly increased in November.

The Federal Open Market Committee cut the fed funds target again in December but signaled fewer cuts in 2025. There was some dissent. The markets are watching to see if the Federal Reserve pauses its easing cycle in January. Join us at noon, Eastern, on Jan. 30 as Brian Rehling, head of global fixed-income strategy at Wells Fargo Investment Institute, recaps and parses the previous day's FOMC meeting and Fed Chair Jerome Powell's press conference.

Analysts are unsure what the Federal Open Market Committee will do with monetary policy in 2025. The panel projects two rate cuts, but some analysts expect more, and others see fewer.