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Dow Jones NewsNov 18, 12:20 PM UTC
Fed Vice Chair Says Economic Trade-Offs Justify Gradual Rate Cuts
Fed Vice Chair Says Economic Trade-Offs Justify Gradual Rate Cuts By Vicky Ge Huang
Fed Vice Chair Philip Jefferson said Monday that the evolving balance of risks-of stubborn inflation and weaker employment conditions-underscores the need to lower interest-rate cuts slowly. Jefferson's careful hedging reflects deep splits among Fed colleagues over next steps on rates. Fed Gov. Christopher Waller said Monday that he supports another quarter-point rate cut in December to help boost an ailing U.S. labor market-and he doubts that he'll change his mind. Meanwhile, two of the leading contenders to replace Fed Chair Jerome Powell took aim at the central bank, sharpening their criticism as the White House prepares for a decision on its leadership. And lawyers of Fed Gov. Lisa Cook provided the first detailed defense of her mortgage applications.
Top News Fed Vice Chair: Economic Trade-Offs Justify Lowering Rates Slowly
Federal Reserve officials face a challenge resolving differences over how to set interest rates
with little new economic data to guide tricky judgment calls.
Fed Vice Chair Philip Jefferson offered a case study in the central bank's predicament on Monday, acknowledging the risk of stubborn inflation and weaker employment conditions-dueling threats that call for opposing prescriptions.
"The evolving balance of risks underscores the need to proceed slowly" with rate cuts, Jefferson said during a talk at the Kansas City Fed.
Fed Governor Lisa Cook Offers First Defense of Mortgage Records
Federal Reserve governor Lisa Cook's lawyer on Monday provided the first detailed defense of her mortgage applications , arguing that apparent discrepancies in loan documents were either accurate at the time or an "inadvertent notation" that couldn't constitute fraud given other disclosures to her lenders.
Fed's Waller Backs December Rate Cut
Fed Gov. Christopher Waller said he supports another quarter-point interest rate cut by the Fed in December to help boost an ailing U.S. labor market-and he doubts that he'll change his mind. The influential governor, a candidate to become Fed chair next year after Jerome Powell's term as chair ends, said on Monday that the labor market is getting weaker and he's less worried about inflation. Waller said he's convinced the labor market has gotten worse based on surveys of consumers and businesses and his own contacts among large employers. Inflation, meanwhile, has not increased by much in the past few months, Waller argued. He said a slowing economy and still-high interest rates have weighed on consumer spending, helping to keep inflation in check. (MarketWatch)
Top Fed Chair Candidates Press Attacks on the Central Bank
Two of the leading contenders to replace Federal Reserve Chair Jerome Powell took aim at the Fed, sharpening their criticism as the White House prepares for a decision on the central bank's leadership. Kevin Warsh, a former Fed governor, published an op-ed in The Wall Street Journal on Sunday, arguing that the central bank has become an obstacle to stronger economic growth. He accused Fed leadership of "defending its mistakes instead of correcting them" and said the institution had fallen victim to "the tyranny of the status quo." And Kevin Hassett, the director of the National Economic Council, who has also emerged as a top contender, echoed much of that message during an interview Monday on CNBC. Hassett said the Fed had made "a lot of policy errors" and needed to "turn the page" by returning to an "independent and data-driven" approach. (Barron's)
Economy Higher Tariffs Take Toll on Global Growth, and Impact Is Set to Linger
The rise in U.S. taxes on imports has had a lighter impact on the global economy
than many policymakers and businesses had feared, but it nonetheless is having an impact that will likely persist through next year and beyond.
Construction Spending Sped Up in August
The pace of U.S. construction spending picked up in August , according to a Census Bureau report Monday that had been delayed by the government shutdown.
New York Manufacturing Activity Accelerates
Factory activity in New York State unexpectedly picked up pace this month , as signals of demand improved, despite some dimming of optimism among manufacturers.
Canada Inflation Eases to 2.2% in October
Annual inflation in Canada cooled as expected in October
as drivers paid less at the pump, but stickiness in core measures helps cement expectations that interest rates won't be cut again any time soon.
The 'JPMorgan Boys' Behind the U.S. Bailout for Argentina
Argentina's Economy Minister Luis Caputo is orchestrating the trade of a lifetime, persuading the U.S. government to go all-in
on President Javier Milei just when it seemed his economic overhaul of Argentina was in jeopardy.
Financial Regulation U.S. Investigators Probe Exec Facing Fraud Allegations From BlackRock's HPS
Federal investigators are probing the telecommunications executive facing fraud allegations
from BlackRock's HPS Investment Partners and other lenders, according to people familiar with the matter.
Harvard Has Almost Half a Billion Dollars in Crypto
Harvard is ramping up its holdings
in cryptocurrency. The nation's oldest university reported a $443 million investment in BlackRock's iShares Bitcoin Trust in the third quarter.
Forward Guidance Tuesday (all times ET)
8:30 a.m.: Import & Export Price Indexes
9 a.m.: Johnson Redbook Retail Sales Index
10 a.m.: NAHB Housing Market Index
10:30 a.m.: Federal Reserve Governor Michael Barr speaks at Kogod School of Business Alan Meltzer Speaker Series event
6 p.m.: FRB Dallas President Lorie Logan speaks at Global Perspectives event
Wednesday
8:30 a.m.: U.S. International Trade in Goods & Services
8:30 a.m.: New Residential Construction - Housing Starts and Building Permits
10 a.m.: Federal Reserve Governor Stephen Miran speaks at the Bank Policy Institute and Small Business & Entrepreneurship Council event
12:45 p.m.: Federal Reserve Bank of Richmond President Thomas Barkin speaks at VACEOs luncheon
2 p.m.: Federal Open Market Committee meeting minutes published
Research Dollar Could Stay Lifted by Cautious Rate Cut Bets For Now
The dollar could remain supported in the near term on bets that the Federal Reserve will take a cautious approach to cutting interest rates, Macquarie strategist Thierry Wizman says in a note. "Traders seem to have accepted the prospect that the Fed is not very likely to cut its policy rate on December 10." This should keep the dollar lifted for now along with indications of growth softness and political uncertainty abroad, he says. Further ahead, however, there is a risk that the Fed cuts rates significantly in 2026 as it bows to political pressure even if the U.S. avoids a severe downturn or recession, he says. - Renae Dyer
About Us
WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Vicky Ge Huang in New York. Send your tips, suggestions and feedback to [vicky.huang@wsj.com].
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
November 18, 2025 07:20 ET (12:20 GMT)
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