CHRISTOPHER RUGABER AP Economics Writer
WASHINGTON — Federal Reserve officials were mostly optimistic about the U.S. and global economies last month, though they noted the risk posed by China's viral outbreak and said they were ready to keep their benchmark interest rate at its current low level in the coming months.
Fed policymakers observed at their Jan. 28-29 meeting that risks to the U.S. economy had faded since their previous meeting in December, according to minutes released Wednesday. The Trump administration had reached a preliminary trade agreement with China, and Congress approved an updated trade pact with Canada and Mexico.
Still, "a number of downside risks remained prominent," officials said, including the coronavirus, which "had emerged as a new risk to the global growth outlook."
Many Fed watchers have interpreted that caution as a signal that the Fed's next move, whenever it occurs, is more likely to be a cut, rather than hike. Traders are now betting that the odds of a cut by year's end are at 85 percent.
The minutes of the Fed's meeting showed that officials were ready to keep key rates at a range of 1.5 percent to 1.75 percent for the foreseeable future. Rates at that level would help the U.S. economy withstand threats from slower growth overseas, policymakers said, and help lift annual inflation back to the Fed's 2 percent objective. Persistently ultra-low inflation as measured by the Fed has been a hallmark of the economic expansion, now in its 11th year.
The officials "viewed the current stance of policy as likely to remain appropriate for a time, provided that incoming information about the economy remained broadly consistent" with their positive outlook, the minutes showed.
Stock prices, which had risen before the Fed minutes were released at 2 p.m. Eastern time, rose higher afterward. The Dow Jones Industrial Average was up about 150 points in mid-afternoon trading.
Chairman Jerome Powell said in testimony before Congress last week that U.S. growth looked durable and that the Fed would "carefully" monitor economic damage caused by the coronavirus. Most economists expect the virus to depress economic growth, at least early in the year, with many companies' supply chains and consumer markets at least partly cut off.
At last month's policy meeting, several officials sought to highlight the Fed's determination to raise inflation back to its 2 percent target level/ These officials "stressed that the (Fed) should be more explicit about the need to achieve its inflation goal on a sustained basis."
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
