Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
India could benefit from the fallout in the U.S.-China trade war, experts told CNBC — but much-needed reforms on land and labor could prove to be a challenge for companies...Asia Economyread more
The FAA administrator's comments come on the eve of his visit to Boeing facilities outside Seattle. While there, he's scheduled to meet with Boeing executives and be briefed...Airlinesread more
The photo depicts Canadian leader Justin Trudeau wearing a turban and robe, with dark makeup on his hands, face and neck. Liberal Party spokesman confirms the photo is of...Electionsread more
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
CBS, CNN and other major media companies are starting to pull e-cigarette advertising off their airways, as the death toll from a mysterious vaping-related illness continues...Health and Scienceread more
The U.S. Federal Reserve on Wednesday cut its overnight rate by 25 basis points to a range of 1.75% to 2%, a move that was widely expected. The central bank, however, appeared...Asia Marketsread more
Investors bought bank stocks because there's a chance the Federal Reserve's interest rate cut may "put an end to this artificially inverted yield curve," Jim Cramer says.Mad Money with Jim Cramerread more
AT&T is considering selling DirecTV, according to a report in the Wall Street Journal.Technologyread more
The Facebook CEO will talk to policymakers "about future internet regulation," according to a spokesperson.Technologyread more
Disney CEO Bob Iger writes in his autobiography that he believes he would have discussed combining Disney with Apple had Steve Jobs lived.Technologyread more
New York Federal Reserve President John Williams called on Thursday for central banks to change their strategy to combat low inflation, which he labeled "a symptom of deeper problems affecting advanced economies."
"In the pre-2008 era, inflation was a major concern for the public and central banks alike," the leader of the Fed's key district said in prepared remarks for a speech at the Council on Foreign Relations in New York. "And, while I will always be vigilant about inflation that's too high, inflation that's too low is now a more pressing problem."
The comments come amid rampant speculation about the Fed's next move, but Williams did not address monetary policy in specifics. He did say that "low neutral rates" or the level that neither promotes nor restricts growth "are very real, and they're here to stay."
The Fed considers 2% a healthy level of inflation, but it has been unable to consistently meet that goal throughout an economic recovery that is nearing the longest on record. Markets lately have been betting that the Fed will begin cutting rates later this year, as many as three times, in part because inflation has remained so low.
Williams attributed the issue to two factors: longer life spans and slower population gains that hold back productivity and thus keep the U.S and other developed economies in a low-growth pattern.
With those factors likely to persist, he called on the Fed and its global counterparts to change their approach to monetary policy.
"Persistently low inflation creates a vicious circle, where expectations of low inflation drag down current inflation. If inflation falls, central banks will have even less room to maneuver when faced with a slowdown," Williams said. "Starting with monetary policy, central banks should reassess their strategies, goals, and the tools they use to achieve them."
He suggested encouraging investment across a broad spectrum and removing barriers to labor force and economic participation.