The Latest Breaking News from the Federal Reserve

US President Donald Trump's tariffs will likely push up prices and constrain growth, and could put the Federal Reserve in the unenviable position of having to choose between tackling inflation and unemployment, the central bank's chair said Wednesday.

The Federal Reserve can stay patient and wait to see how tariffs and other economic policies of the Trump administration play out before making any changes to interest rates, Chair Jerome Powell said Wednesday

The prospect of high inflation stemming from widespread tariffs along with weaker hiring could put the Federal Reserve in a difficult spot, Fed policymakers said in minutes from last month’s meeting

Hedge funds typically profit handsomely from the $1 trillion “basis trade,” but the Federal Reserve could be forced to step in as yields surge.

President Donald Trump’s sharp tariff hikes last week have sent the stock market into a tailspin, raised alarm bells among Wall Street executives, and heightened many economists’ worries that the U.S. could tip into recession

"Unless the functioning of financial markets, such as the flow of credit, begins to seize up, there isn’t much the Fed can do."

It’s hard to say if the president truly knows what he’s doing. But there is a precedent for the US causing short-term chaos and reaping long-term gain, says economist James Meadway

When U.S. President Donald Trump imposed sweeping new tariffs on imported goods on April 2, 2025 – upending global trade and sending markets into a tailspin – he presented the move as a response to a crisis. In an executive order released the same day, the White House said the…

June S&P 500 E-Mini futures (ESM25) are down -3.29%, and June Nasdaq 100 E-Mini futures (NQM25) are down -3.81% this morning as worries over the economic fallout of U.S. President Donald Trump’s sweeping tariffs continue to weigh on sentiment.