American Consumers, Not China, Are Paying for Trump’s Tariffs

WASHINGTON — American businesses and consumers, not China, are bearing the financial brunt of President Trump’s trade war, new data shows, undermining the president’s assertion that the United States is “taxing the hell out of China.” “U.S. tariffs continue to be almost entirely borne by U.S. firms and consumers,” Mary Amiti, an economist at the Federal Reserve Bank of New York, wrote in a National Bureau of Economic Research working paper. The other authors of the paper were David E. Weinstein of Columbia University and Stephen J. Redding of Princeton.…

Marvin Goodfriend, Trump Nominee to the Federal Reserve, Dies at 69

Professor Goodfriend’s insights were often applied directly to policy. He served as a visiting scholar at various global monetary authorities, including the Bank of Japan and the European Central Bank. From 1984 to 1985, he served as a senior staff economist for President Ronald Reagan’s Council of Economic Advisers. “He really excelled at bridging the divide between rigorous academic economics and policy-setting,” said Jeffrey Lacker, a former president of the Richmond Fed who worked with Professor Goodfriend when both were on the staff there. His research also helped to fundamentally…

Trump Meets With Fed Chair Powell for a ‘Cordial’ Talk

WASHINGTON — The chair of the Federal Reserve, Jerome H. Powell, met with President Trump on Monday to discuss the economy, a first since Mr. Trump labeled the central bank chief and his colleagues “boneheads” and questioned whether Mr. Powell or President Xi Jinping of China was a bigger “enemy” of America. The meeting, which the Fed said Mr. Trump had requested, was the first between Mr. Powell and the president since February. In the intervening months, Mr. Trump has regularly taken to Twitter or television to criticize central bankers…

The Fed May Have Shrunk Its Balance Sheet Too Much. Does It Matter?

President Trump spent nearly a year insisting that the Federal Reserve should stop shrinking the vast holdings of government-backed securities on its balance sheet, arguing that the process was reining in the United States economy. Last week may have vindicated Mr. Trump’s perception that the central bank went too far with the process — often called quantitative tightening, or Q.T. — though for a much more nuanced reason. The tightening, which took place between late 2017 and last month, did not hit economic growth in a discernible way, as Mr.…

Fed Cuts Interest Rates by Another Quarter Point

WASHINGTON — The Federal Reserve lowered interest rates by a quarter of a percentage point on Wednesday, its second cut since late July, and suggested it was prepared to move aggressively if the United States economy showed additional signs of weakening. For now, a growing number of Fed officials expect one more cut this year, based on economic projections released after the Fed’s two-day meeting. But a murky economic outlook and a division within the Fed’s policy-setting committee prevented a clear message about what comes next. Jerome H. Powell, the…