The Supreme Court allowed Federal Reserve Gov. Lisa Cook to remain in office while her challenge to President Trump’s attempted firing proceeds. In a separate ruling, the court expanded Trump’s power to remove FTC commissioners and other independent agency officials.
Posts tagged as “Interest Rates”
The Fed’s preferred inflation measure rose at a 4.1% annual pace in May, the fastest since April 2023, as energy prices climbed. Consumer spending and incomes still increased after adjusting for inflation.
Technology shares fell sharply around the world Tuesday as investors questioned whether AI spending will produce profits that justify lofty valuations. SpaceX, chipmakers and memory stocks led the declines, while inflation and interest-rate concerns added pressure.
The Federal Reserve unanimously held interest rates at 3.5% to 3.75% in Kevin Warsh’s first meeting as chair. New projections showed inflation expectations rising and nearly half of policymakers open to a rate hike later this year.
Kevin Warsh chairs his first Federal Reserve rate meeting as inflation rises and energy prices remain elevated after the U.S.-Iran conflict. Investors will watch the policy statement, news conference and dot plot for signs of the new chairman’s approach.
The Bank of Japan raised its benchmark rate to 1%, the highest since 1995, citing energy-driven price pressures and rising inflation expectations. The move continues Japan’s shift away from decades of ultra-low borrowing costs.
U.S. consumer prices rose 4.2% in May from a year earlier, the fastest increase since April 2023. Energy costs, especially gasoline, drove much of the rise as conflict disrupted oil shipping through the Strait of Hormuz.
U.S. inflation rose to 4.2% in May, the highest level in three years, as energy costs tied to the Iran war continued to climb. Core inflation increased 2.9%, while wage growth lagged behind the broader rise in prices.