About our Federal Reserve news
Latest news on the Federal Reserve, the US central bank, covering FOMC interest rate decisions, inflation, the federal funds rate and Fed chair Kevin Warsh.
Founded in 1913 under the Federal Reserve Act, the Federal Reserve, often known simply as the Fed, is the central bank of the United States and one of the most influential institutions in global finance. It is made up of a Board of Governors in Washington and twelve regional Reserve Banks, including the Federal Reserve Bank of New York. Its rate-setting arm, the Federal Open Market Committee (FOMC), meets eight times a year to set the federal funds rate, the benchmark that ripples through borrowing costs worldwide. The Fed operates under a dual mandate, balancing maximum employment with price stability, targeting 2% inflation over the long run.
In May 2026, Kevin Warsh was sworn in as Fed chair, succeeding Jerome Powell after a Senate confirmation vote that was the narrowest in the role's history. Powell's chairmanship ended after eight years in which he guided the Fed through a pandemic-era downturn and the sharpest inflation surge in four decades. Rather than leave the central bank entirely, Powell opted to remain on the Board of Governors, citing an unresolved Justice Department inquiry into renovation costs at the Fed's Washington headquarters. The leadership change followed a separate, closely watched legal fight after the president attempted to remove Fed governor Lisa Cook, a dispute that reached the Supreme Court and tested the boundaries of the central bank's independence.
For ordinary households, the Fed's decisions are felt well beyond Wall Street. Changes to the federal funds rate move mortgage rates, credit card interest, car loan costs and savings account returns. Investors and economists scrutinise every FOMC statement and the quarterly 'dot plot' of officials' rate projections for clues on whether cuts, hikes or a continued pause lie ahead. Persistent inflation, running above the Fed's target and driven partly by elevated energy costs linked to conflict in the Middle East, has kept policymakers cautious about further changes to interest rates.
The Fed's roots lie in a series of banking panics that exposed the lack of a stable national currency and a lender of last resort, prompting Congress to create the central bank in 1913. Its independence from short-term political pressure was reinforced by the 1951 Treasury-Fed Accord, struck after a clash with the White House over wartime borrowing costs. That independence was tested again in the late 1970s and early 1980s, when Chair Paul Volcker pushed the federal funds rate close to 20% to break runaway inflation, and once more in 2022, when inflation hit its highest level since that era.
From interest rate announcements and inflation data to political battles over its independence, the Federal Reserve remains one of the most closely watched institutions in global finance. Its decisions shape everything from mortgage bills to stock market swings, making reliable, up to date coverage essential for households, businesses and investors alike. Our NewsNow feed on the Federal Reserve brings together the latest headlines on interest rates, FOMC meetings, monetary policy and the people steering America's central bank, so you never miss a development that could affect your finances.