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    Buying a Home? Without the CFPB, You Need to Be Your Own Watchdog.

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    The C.F.P.B. had kept a close eye on mortgage lenders. But with the bureau hobbled, consumers should take several steps, starting with shopping for the best mortgage rates.House prices are stubbornly high, and mortgage rates remain substantially above their prepandemic level. Now, with the spring home buying season looming, shoppers have a new worry: A major federal consumer watchdog has been hobbled.Without the Consumer Financial Protection Bureau, the agency responsible for overseeing most aspects of the home buying process, consumer advocates say home buyers need to be their own watchdogs.“Now, when you buy a house, you are much more vulnerable to being misled,” said Sharon Cornelissen, housing director with the Consumer Federation of America. “It’s important to be on guard, because guardrails are being taken away.”Buying a home is the biggest financial decision most Americans will make in their lives. The typical home price is about $397,000, according to the National Association of Realtors, but prices are far higher in some parts of the country. In several California counties, for instance, the median price at the end of last year was over $1.5 million, with monthly mortgage payments over $8,000.What role has the consumer bureau played in home buying?The consumer bureau was created after the financial and housing crisis in 2007-8 to streamline oversight of lenders and financial companies serving consumers. Over the years, the bureau has moved to ease the mortgage shopping process by offering simplified forms and educational tools, and has taken action against an array of banks and lenders. In 2022, for instance, the bureau ordered Wells Fargo to pay $3.7 billion for mishandling a variety of customer accounts, including improperly denying thousands of requests for mortgage loan modifications that in some cases led borrowers to lose their homes to “wrongful” foreclosures.On Jan. 17, in the final days of the Biden administration, the bureau reached a settlement with Draper and Kramer Mortgage Corporation for discouraging borrowers from applying for loans to buy homes in majority Black and Hispanic neighborhoods in Chicago and Boston. In an email, the lender’s lawyers said Draper and Kramer “considers the matter closed and denies” the bureau’s claims, but chose to settle in part to avoid “protracted legal costs.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      E.C.B. Cuts Interest Rates Again, With an Uncertain Path Ahead

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      Vows by European leaders in increase borrowing to ramp up military spending has reshaped the fiscal picture that the central bank must confront.The European Central Bank lowered interest rates on Thursday, the sixth consecutive cut, as the economic landscape for the region rapidly changes.The bank’s key rate was cut by a quarter point to 2.5 percent, which was widely expected as inflation in the region has stayed relatively low and economic growth has been weak.But the future path of interest rates has become increasingly uncertain as policymakers face a seismic shift in Europe. In the past few days, European leaders have vowed to increase military spending by hundreds of billions of euros as they are no longer sure of their alliances with the United States.The plans, which include borrowing more, notably in Germany, have led to yields on European government bonds jumping higher, particularly on long-dated debt, and rising borrowing costs. The prospects of more spending combined with lower interest rates has helped to push stocks up, with Germany’s benchmark index, the DAX, at a record high. And the euro is also rallying against the U.S. dollar to its strongest level in four months, further easing inflationary pressures.This has reshaped the fiscal picture in Europe at a time when the central bank was grappling with the prospect of President Trump imposing tariffs on the region.There has been division among the members of the European Central Bank’s Governing Council about how much lower interest rates need to go. Overall, policymakers have signaled that they were aiming for a neutral rate, where policy would neither restrict nor boost the economy. But they said they would only know that the rate had been reached when they were at it.On Thursday, the central bank said monetary policy was “becoming meaningfully less restrictive,” a sign that policymakers are drawing closer to pausing interest rate cuts.With yields rising, traders are signaling that there will be just one more rate cut, potentially in April or June.The eurozone economy has been sluggish since late last year, and policymakers have substantially cut interest rates — lowering them by 1.5 percentage points since last summer — to support businesses and households with easier access to loans. The extent of economic weakness has taken policymakers by surprise as consumers have been slow to spend more in response to lower inflation. But the central bank is still forecasting the economy will pick up later this year.Still, the central bank forecast slightly slower growth than it did three months ago, anticipating lower exports and weak investment as businesses contend with uncertainty over trade policy. The eurozone economy is now forecast to grow 0.9 percent this year and 1.2 percent next year.Inflation in the eurozone slowed to 2.4 percent in February, data published earlier this week showed, down from 2.5 percent the month before. Inflation in the services sector, which has been frustratingly stubborn for policymakers, also slowed to 3.7 percent, from 3.9 percent in January. More

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      PCE Report Showed Inflation Eased Slightly in January

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      But consumer spending unexpectedly slowed, complicating the central bank’s plans for interest rates.Getting inflation under control since the worst surge in decades has been a bumpy process in recent months. New data on Friday showed a little progress, but also an unexpected pullback in consumer spending, complicating the path forward for the Federal Reserve as it debates when to restart interest rate cuts.The central bank’s preferred inflation measure, released on Friday, climbed 2.5 percent in January from a year earlier, slightly lower than the previous reading of 2.6 percent but still well above the central bank’s 2 percent target. On a monthly basis, prices increased 0.3 percent, in line with December’s pace.The “core” personal consumption expenditures price index, which strips out volatile food and energy costs and is closely watched as a gauge for underlying inflation, rose another 0.3 percent in January. Compared to the same time last year, it is up 2.6 percent, data from the Commerce Department showed. In December, it rose at an annual pace of 2.8 percent.The inflation figures were in line with what economists had expected and underscored the Fed’s decision to proceed cautiously with interest rate cuts after making adjustments in the second half of last year. The interest rate set by the Fed stands at 4.25 percent to 4.5 percent.Spending fell 0.2 percent in January, led by a drop in spending on cars and other goods. Economists had expected a 0.2 percent increase overall, following a 0.8 percent increase in December. Once adjusted for inflation, spending dropped by 0.5 percentage points, which is the sharpest monthly drop in almost four years.Thomas Ryan, an economist at Capital Economics, attributed the decline in part to “unseasonably severe winter weather,” but warned that the Fed’s job will become “trickier if January’s sharp decline in consumption was a sign of consumer strength buckling.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Can the Federal Reserve Look Past Trump’s Tariffs?

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      Top officials are grappling with how to handle potential price increases caused by the administration’s policies.As President Trump’s efforts to restructure the global trade system with expansive tariffs begin to take shape, one question continues to dog officials at the Federal Reserve: How will these policies impact the central bank’s plans to lower interest rates?One influential Fed governor made clear on Monday that he did not expect Mr. Trump’s policies to derail the Fed’s efforts to get inflation under control, suggesting instead that fresh interest rate cuts are still in play this year.“My baseline view is that any imposition of tariffs will only modestly increase prices and in a nonpersistent manner,” Christopher J. Waller, the official, said in remarks at an event in Australia Monday evening. “So I favor looking through these effects when setting monetary policy to the best of our ability.”Economists are concerned that tariffs, which are essentially taxes on American consumers, will increase prices in the United States, at least temporarily, and over time slow economic growth.Mr. Waller acknowledged that the economic impact of the tariffs could be larger than anticipated depending on how they are structured and later put in place. But he suggested that any uptick in prices from tariffs could be blunted by other policies, which could have “positive supply effects and put downward pressure on inflation.”Mr. Waller’s views matter given that he is one of the seven officials who make up the Board of Governors and votes at every policy meeting.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Which Interest Rate Should You Care About?

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      The Fed’s short-term rates matter, but the main action now is in the 10-year Treasury market, which influences mortgages, credit cards and much more, our columnist says.Watch out for interest rates.Not the short-term rates controlled by the Federal Reserve. Barring an unforeseen financial crisis, they’re not going anywhere, especially not after the jump in inflation reported by the government on Wednesday.Instead, pay attention to the 10-year Treasury yield, which has been bouncing around since the election from about 4.8 to 4.2 percent. That’s not an unreasonable level over the last century or so.But it’s much higher than the 2.9 percent average of the last 20 years, according to FactSet data. At its upper range, that 10-year yield may be high enough to dampen the enthusiasm of many entrepreneurs and stock investors and to restrain the stock market and the economy.That’s a problem for the Trump administration. So the new Treasury secretary, Scott Bessent, has stated outright what is becoming an increasingly evident reality. “The president wants lower rates,” Mr. Bessent said in an interview with Fox Business. “He and I are focused on the 10-year Treasury.”Treasuries are the safe and steady core of many investment portfolios. They influence mortgages, credit cards, corporate debt and the exchange rate for the dollar. They are also the standard by which commercial, municipal and sovereign bonds around the world are priced.What’s moving those Treasury rates now is bond traders’ assessments of the economy — including the Trump administration’s on-again, off-again policies on tariffs, as well as its actions on immigration, taxes, spending and much more.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      How to Pay Off Credit Card Debt

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      A new report finds that people are spending more on their cards and paying down less. Financial experts offer tips for reducing that debt, starting with looking at your spending habits.Credit card debt is weighing on many Americans.The share of credit card holders making just the minimum monthly payment is at a 12-year high, the Federal Reserve Bank of Philadelphia reported last month. People are spending more on their cards but paying off less, increasing the amount of debt carried month to month and paying more in interest. And more people are late in paying their monthly card bill.“Credit card performance is showing signs of consumer stress,” the bank’s report said.Adding to the stress is the fact that interest rates on credit cards have risen in recent years. The average rate was more than 21 percent at the end of last year, the Federal Reserve said, compared with about 15 percent in 2019.So whether you observe “frugal” February or try a “no spend” challenge, now is a good time to make a plan to chip away at your balances.Right after the new year, “people have so many things on their mind,” said Charlestien Harris, a financial counselor in Clarksdale, Miss., with Southern Bancorp Community Partners. “By February, a person has a chance to settle down. You can begin to focus more and name a goal or two.”If you’re worried about your card debt, there are options that can help you get it under control — such as transferring your balance to a lower-rate credit card, if you qualify. But the first step is to get a clear picture of your spending habits, said Daniel Yerger, a fee-only financial planner in Longmont, Colo.“Before you consolidate or refinance the debt, you have to address the ‘why’ of what’s happening,” Mr. Yerger said. If you are consistently spending beyond your means, moving the debt to a new card isn’t likely to help in the long run. “We can shuffle it around,” he said, “but you want to get ahead of it.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      European Central Bank Cuts Interest Rates as the Economy Weakens

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      The bank has been lowering rates since June as inflation slowed, but other risks are growing, including the threat of higher tariffs promised by President-elect Donald J. Trump.The European Central Bank lowered interest rates on Thursday, the fourth cut this year amid growing concerns that the region’s economic outlook is darkening.Policymakers reduced the bank’s deposit rate by a quarter point, to 3 percent, in a move widely expected by investors. The bank, which sets rates for the 20 countries that use the euro, has been lowering rates since June as inflation slowed toward its target of 2 percent. In November, inflation averaged 2.3 percent across the region, slightly higher than in previous months as energy prices rose.“The disinflation process is well on track,” Christine Lagarde, the president of the central bank, said on Thursday at a news conference in Frankfurt. The bank forecast inflation to average 2.1 percent next year.Despite substantial progress on reining in inflation in recent years, other risks are accumulating. Europe faces the prospect of higher tariffs on its goods exported to the United States imposed during the second term of President-elect Donald J. Trump, and political turmoil in Germany and France, the bloc’s two largest economies, is adding to the uncertainty. Much of the past year has been spent warning that Europe needs to take drastic action to improve its competitiveness, but it is not clear where the leadership will come from to make the necessary changes. That increases the pressure on the central bank to support the economy with lower interest rates.As inflation has slowed in Europe and the United States, central bankers have eased their monetary policy stances. But in recent months, there are growing distinctions between the banks over how fast and how much they need to lower rates.Earlier on Thursday, the Swiss National Bank cut rates by a larger-than-expected half-point as its currency, considered a haven during times of geopolitical stress, has strengthened. Next week, the U.S. Federal Reserve is expected to cut rates after inflation data published on Wednesday added to confidence of slowing price growth. And the Bank of England is expected to hold rates next week, continuing its gradual approach to easing amid concerns the recent government budget will add to price pressures.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      High-Yield Savings Accounts Are Still a Good Deal

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      Interest rates have been falling, but deposits are earning more than inflation.You’ve probably been discouraged to see the interest rate on your high-yield savings account fall during the past couple of months. But your money is still earning much more than it would in a traditional savings account — and more than inflation.Rates paid on cash in savings accounts have been dropping since the Federal Reserve began cutting its key interest rate in September as inflation cooled. The central bank cut rates again, by a quarter point, at its meeting this month, and another cut in December is seen as likely, though not certain because of a recent uptick in inflation.Banks are following the Fed’s lead in gradually reducing interest rates. Even so, the rates paid on federally insured high-yield savings accounts, many offered by banks that operate solely or mostly online, are still beating inflation, which was 2.6 percent on an annual basis in October.“High-yield savings accounts are still attractive relative to traditional savings accounts,” particularly for emergency or “rainy day” funds that savers want to be able to tap into quickly, said Alan Bazaar, chief executive and co-chief investment officer at Hollow Brook Wealth Management in Katonah, N.Y.Online banks were offering rates of 4 percent or higher this week, compared with a national average rate of just 0.56 percent for all types of savings accounts, according to the financial site Bankrate. If you put $5,000 in a savings account for a year at the average rate, you’d earn just $28, compared with about $200 with a high-yield account. (At some of the biggest national banks, which are offering just 0.01 percent, you’d end up with a measly 50 cents.)Just a few years ago, savers were getting 1 percent on their deposits at best, so 4 percent is nothing to scoff at, said Ted Rossman, a senior industry analyst at Bankrate. High-yield accounts can also be attractive for funds needed in the not-so-distant future — say, for a child heading to college or for retirees looking to set aside cash for living expenses.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Powell, Fed Chair, Will Likely Face Heavy Pressure From Trump

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      The chair of the Federal Reserve made clear he would not resign, even under pressure. But pressure from the White House is likely, market watchers say.Jay Powell, the Fed chair, with President Trump during more tranquil times in 2017.Carlos Barria/ReutersPowell pushes back Jay Powell and the Fed may have pulled off the improbable soft landing in taming inflation while not crashing the economy into recession, proving many a Wall Street naysayer wrong.But an even bigger wildcard looms in another Donald Trump presidency — what Trump 2.0 might mean for interest rates, Fed independence and the Fed chair’s own job.That tension burst into the open at the Fed’s news conference on Thursday. The usually dry event had moments of high drama that nearly overshadowed the decision to cut the benchmark lending rate by a quarter percentage point. Powell delivered a forceful “no” when asked by Victoria Guida of Politico if he would consider resigning if Trump asked.He delivered a more emphatic response when pressed by another reporter on whether the president had the legal authority to fire him. “Not permitted under the law,” Powell said.Trump has made waves by saying that a president should have a say in rates policy. And suggestions have circulated from inside the president-elect’s camp that he would sideline Powell if re-elected — something Trump flirted with during his first term after appointing Powell in 2017.The S&P 500 advanced as the news conference wore on, closing at another record, and Treasury bonds also rallied.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More