With the annual Jackson Hole, Wyoming, Economic Policy Symposium approaching this week, economists are expressing nervousness on whether the U.S. Federal Reserve will begin to raise interest rates before inflation sets in. With the U.S. unemployment rate at 6.2 percent in July — more than a full point lower than July 2013 — and private-sector earnings up 2 percent for hourly workers, a handful of Fed officials admit worry is justified, the Wall Street Journal reported Sunday.
“The idea that the Fed might get behind the curve is a powerful one, and that’s certainly been the history of the institution. People are right to worry about that,” St. Louis Fed President James Bullard told the Journal. Continue reading
A top Federal Reserve official warned on Tuesday of potential risks to financial stability from cyberattacks on the U.S. payments system and from a looming funding gap in public pensions.
Lockhart is the latest in a string of government officials and corporate executives who have warned of the potential danger of cyberattacks on the U.S. In October, Defense Secretary Leon E. Panetta warned that the U.S. faced the possibility of a “cyber-Pearl Harbor” from hackers who could dismantle the nation’s power grid, transportation system, and financial and government networks. Continue reading