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
August 21, 2026 14:42 ET The minutes of the latest policy meeting of the Federal Reserve, housing market data and manufacturing sector survey results were the main news for the U.S. economy this week. In Europe, inflation data from the U.K. was the highlight, while consumer price data from Japan drew attention in Asia.