Dec 13, 2017

Fed boosts interest rates, mirroring confidence in economy

Haley Britzky

Federal Reserve Chair Janet Yellen. Photo: Jacquelyn Martin / AP

The Federal Reserve has increased interest rates to 1.25-1.5%, the third boost this year, NPR reports.

Why it matters: The increase indicates that there is confidence in the economy, per NPR. Fed officials are suggesting that the central bank is working to avoid rapid inflation in coming months (as a result of the GOP tax overhaul) by quickening the pace of rate increases.

  • Per CNBC, the Federal Open Market Commitee (FOMC) statement released on Wednesday showed more confidence in in the economy bouncing back after the major hurricanes this year.
  • The October statement said: "Hurricane-related disruptions and rebuilding will continue to affect economic activity, employment, and inflation in the near term, but past experience suggests that the storms are unlikely to materially alter the course of the national economy over the medium term."
  • The new statement says: "Hurricane-related disruptions and rebuilding have affected economic activity, employment, and inflation in recent months but have not materially altered the outlook for the national economy."

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Caitlin Owens

Special report: Health care workers vs. coronavirus

Photo Illustration: Sarah Grillo/Axios. Photos: Angela Weiss/AFP via Getty Images, Bruce Bennett/Getty Images, and Europa Press News/Europa Press via Getty Images

Health care workers are at an especially high risk of catching the coronavirus, because of their prolonged exposure to patients who have it. Making matters worse, the U.S. doesn't have enough of the protective equipment, like masks and gloves, that keeps them safe.

  • And yet these workers, with loved ones of their own, keep showing up at hospitals across the country, knowing that more Americans than they can possibly care for are depending on them.
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Dion Rabouin

Backed by the Fed, bond investors get bullish

Illustration: Sarah Grillo/Axios

The Fed's massive injections of liquidity have reopened much of the bond market, and after back-to-back weeks in which more than $100 billion flowed out of bond funds, investors have regained their bearings and now see opportunity.

What's happening: But after the hemorrhaging outflows relented last week, bulls may now be sticking their heads out a bit too far. Junk bond funds took in more than $7 billion for the week ended April 1, according to Refinitiv Lipper, setting a new weekly record.

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Jim VandeHei, Mike Allen

What top CEOs fear telling America about the coronavirus shutdown

Illustration: Eniola Odetunde/Axios

Top CEOs, in private conversations and pleas to President Trump, are warning of economic catastrophe if America doesn't begin planning for a phased return to work as soon as May, corporate leaders tell Axios.

Why it matters: The CEOs say massive numbers of companies, big and small, could go under if business and government don't start urgent talks about ways groups of workers can return.

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