Latest news with #NickTimiraos
CNBC
3 days ago
- Business
- CNBC
We're going to have the most unusual Fed transition ever, says WSJ's Nick Timiraos
Nick Timiraos, Wall Street Journal chief economist correspondent, joins 'Squawk Box' to discuss the escalating feud between President Trump and Fed Chair Powell, what firing the Fed Chair could mean for markets, impact on the bond market and economy at large, and more.
Wall Street Journal
03-07-2025
- Business
- Wall Street Journal
Why the Fed Is Likely to Stay on Pause
The June jobs report is likely to keep the Federal Reserve in a wait-and-see stance for the summer, writes our Nick Timiraos, as officials watch how changes to trade and immigration policy influence pricing and staffing decisions by U.S. businesses. Go deeper:
Yahoo
02-07-2025
- Business
- Yahoo
What a weak jobs report could mean for the Fed's next move
ADP reported a loss of 33,000 private payroll jobs in June, far below expectations for a 98,000 gain. Nick Timiraos, chief economics correspondent at The Wall Street Journal, explains how the Federal Reserve might interpret this softening labor data and whether slower job growth alone could shift rate policy. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here.
Forbes
29-06-2025
- Business
- Forbes
If Fed Cuts Result In Inflation, Then Chair Powell Has Nothing To Fear
WASHINGTON, DC - SEPTEMBER 18: Federal Reserve Chairman Jerome Powell speaks during a news ... More conference following the September meeting of the Federal Open Market Committee at the William McChesney Martin Jr. Federal Reserve Board Building on September 18, 2024 in Washington, DC. The Federal Reserve announced today that they will cut the central bank's benchmark interest rate by 50 basis points to a new range of 4.75%-5%. (Photo by) Credit is produced. Repeat the previous truth over and over again, and after internalizing the simple truth that we borrow money for what it can exchanged for. That we borrow dollars to get things lays waste to the popular notion within the various economic religions that an 'easy' Fed is an inflationary Fed. No, that's not how it works. Markets are wise. The Fed can't decree credit easy or tight, and they can't because there's no credit by decree in the first place. Credit is once again produced in the form of market goods and labor. The Fed produces neither, which is yet another comment that the Fed's ability to influence economic activity is well overstated. Still, for fun let's imagine a la Wall Street Journal Fed-watcher Nick Timiraos that the Fed is capable of easing or tightening credit conditions by fiddling with the Fed funds rate. Timiraos suggests the Fed's powers have put Fed Chairman Jerome Powell in a 'No-Win Scenario.' In his words, the Fed could 'cut rates sharply as Trump wants and risk fueling inflation that damages its credibility with markets. Or it could maintain its current wait-and-see stance, and face further bullying that would weaken its standing if the economy slows sharply and the administration is validated in its view that inflation shouldn't be a worry.' Timiraos's description of the Fed's allegedly difficult choices firstly implies a false definition of inflation. In his defense, it's the Fed's false definition. Specifically, economic growth does not cause inflation as Timiraos implies. If it did, Iran, Lebanon and Zimbabwe would be some of the highest growth locales on earth. More realistically, inflation is devaluation. Nothing else. That's precisely why the rial, Lebanese pound, and the Zimbabwean dollar don't much circulate in the countries mentioned. No producer would be so foolish as to exchange labor and market goods for 'money' that has no trust in the marketplace. From there, it must be said that economic growth by its very description is a sign of falling prices as is. That's because economic growth is just another term for rising productivity, and the latter is an effect of investment that increases the production of more and more in the way of market goods at prices that continue to fall. Still, let's imagine inflation as Timiraos does, which is just the Journal reporter correctly reporting on what the Fed deems inflation. To its central bankers, lower rates of interest are the same as 'easy credit' (the latter an impossibility, but let's roll with it) that will allegedly cause the economy to grow and prices to rise. Ok, but if so, the allegedly higher inflation born of the Fed's ease would logically result in higher market rates of borrowing. Geti it? If Fed fiddling is inflationary, credit sources eager to not lend in return for reduced returns will logically rein in their own lending. Assuming the reverse whereby the Fed maintains its 'wait-and-see' approach, the reverse applies. Assuming the Fed is the source of credit that economists imagine (it's not, but let's just assume), what it takes through so-called 'tightness' will be made up for by credit providers outside the Fed, and who see an opportunity to lend profitably. It's just a comment about what's true, that the only 'closed economy' is the world economy. Assuming the Fed's definition of inflation is real (it's not), and assuming the Fed is a provider of credit (it's not), the no-win scenario ascribed by Timiraos to Powell is anything but. Markets are powerful, and to say they can overcome central plans insults understatement.
Yahoo
17-06-2025
- Business
- Yahoo
Wall Street analyst spells out Fed's next interest rate move
Wall Street analyst spells out Fed's next interest rate move originally appeared on TheStreet. The Wall Street Journal's chief economics correspondent, Nick Timiraos, thinks there are good reasons to think the Federal Reserve would be preparing to cut interest rates this week due to recent improvements in inflation, if not for the risk tariffs pose to prices. President Donald Trump's tariff policy, targeted in particular against China, shattered the crypto markets for the first few weeks. The total crypto market cap went down from $2.7 trillion on Apr. 2 — when Trump hiked tariffs — to $2.4 trillion on Apr. 9 — when he paused tariffs for all except China for 90 days. The Fed is holding the FOMC meeting on June 17-18 to take a decision on rate cuts, but Timiraos wrote that the officials will continue to extend the wait-and-see policy. Though the May CPI came in softer-than-expected at 2.4%, it is still much higher than the Fed's target of 2%. The central bank not only has to factor in the implications of Trump's tariff policy but also the latest escalations in the Middle East war. In addition, the Fed Chair Jerome Powell also has to brave the aggressive posturing of President Trump, who has been warning Powell to slash rates. The implication of the Fed opting for a potential rate cut is huge for the crypto market, as it is no longer as insulated from traditional markets as it once used to be. In fact, it is known to react sharply to the Fed's moves of late. If the bank decides to slash interest rates at least once later this year, it is expected that the crypto market would witness a substantial fund inflow. The total crypto market cap stood at $3.28 trillion at press time. As per Kraken, Bitcoin was trading at $105,550.20 at press time, down 1.28% a day. Wall Street analyst spells out Fed's next interest rate move first appeared on TheStreet on Jun 17, 2025 This story was originally reported by TheStreet on Jun 17, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
