Citing unexpectedly intense volatility in wholesale funding markets, Federal Reserve Chairman Jerome Powell indicated on Tuesday that the central bank intends to resume increasing the size of its balance sheet.
Powell noted in remarks at the National Association for Business Economics annual meeting in Denver, Colorado, that notable liquidity pressures in money markets in mid-September caused overnight interest rates to spike, with the effective federal funds rate briefly moving above the Fed's target range.
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Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.