Federal Reserve Chair Jerome Powell will hint that the central bank could increase the pace of interest rate hikes if data indicate price pressures continuing, according to a prepared statement shared ahead of his congressional testimony on Tuesday.
"If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes," he will say. "Restoring price stability will likely require that we maintain a restrictive stance of monetary policy for some time."
Powell acknowledged that inflation has slowed since the middle of last year but remains above the FOMC committee's longer-run objective of 2 percent. He also noted that there has been "little sign of disinflation thus far in the category of core services excluding housing, which accounts for more than half of core consumer expenditures."
Bringing down inflation in core services will likely require softening in the labor market, according to the Federal Reserve chair. Powell noted that nominal wage gains have slowed recently, but remain "above what is consistent with 2 percent inflation and current trends in productivity."
Repeating a common refrain from the nation's top banker, he said, "Strong wage growth is good for workers but only if it is not eroded by inflation."
The Biden administration has enacted a new labor rule that aims to prevent the misclassification of workers as independent contractors. The labor department rule going into effect Tuesday replaces a scrapped Trump-era standard that lowered the bar for classifying employees as contractors
The KC-46 was to be the ideal candidate for a fixed-price development program. Instead, it has cost Boeing billions, and made industry wary of such deals.
Dave Long, CEO and Co-Founder of Orangetheory Fitness joins Cheddar to chat trends in the industry for 2024. He updates us on the company's plans to expand and what the state of the economy has meant for business.
One of the world's largest renewable energy developers will be getting hundreds of wind turbines from General Electric spinoff GE Vernova as part of a record equipment order and long-term service deal.
A moon landing attempt by a private US company appears doomed because of a fuel leak on the newly launched spacecraft. Astrobotic Technology managed to orient the lander toward the sun Monday so its solar panel could capture sunlight and charge its onboard battery.
Treasury Secretary Janet Yellen has announced that 100,000 businesses have signed up for a new database that collects ownership information intended to help unmask shell company owners. Yellen says the database will send the message that “the United States is not a haven for dirty money.”
A new version of the federal student aid application known as the FAFSA is available for the 2024-2025 school year, but only on a limited basis as the U.S. Department of Education works on a redesign meant to make it easier to apply.
A steep budget deficit caused by plummeting tax revenues and escalating school voucher costs will be in focus Monday as Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return for a new session at the state Capitol.
The first U.S. lunar lander in more than 50 years is on its way to the moon. The private lander from Astrobotic Technology blasted off Monday from Cape Canaveral, Florida, catching a ride on United Launch Alliance's brand new rocket Vulcan.
