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Fed keeps interest rates same, as expected, with changes likely months away – New Jersey Monitor

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Fed keeps interest rates same, as expected, with changes likely months away – New Jersey Monitor


The Fed held key interest rates steady again Wednesday, as expected, and signaled that a decision that could affect everything from credit card rates to the housing market to new business creation could still be months away.

It was the fourth consecutive time the central bank has left the rate unchanged since its September 2023 announcement. In March 2022, the Fed began aggressively raising rates to stop ballooning inflation.

Following the announcement, Federal Reserve Chair Jerome Powell said that confidence is growing that inflation is coming down to meet the Fed’s target of 2%, it needs to see more data to decide to cut rates, particularly in the 12-month core inflation data.

But Powell said its confidence likely won’t be strong enough to cut rates by March as many economists believed would happen, meaning it could be May before a decision is made to cut rates.

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“I think to get to that place where we feel comfortable starting the process we need some confirmation that inflation is in fact coming down, sustainably to 2%,” Powell said.

Powell added that serious changes to the labor market would affect the Fed’s decisions about when to cut rates.

“If we saw an unexpected weakening certainly in the labor market, that would weigh on cutting sooner,” he said. “And if we saw inflation being stickier or higher, or those sorts of things, we’d argue for moving later.”

The decision to hold rates steady was in line with economists’ expectations for the meeting. The issue of when to stop increasing rates and when to begin cutting rates, to avoid harming the economy and cause high unemployment, has been a matter of intense debate among economists and policymakers during this latest cycle of rate hikes. Over the past six months, core inflation or the Personal Consumption Expenditures price index is 1.9%, leading some economists to argue that it’s time to begin cutting rates.

Mike Konczal, director of macroeconomic analysis at the Roosevelt Institute, a progressive think tank, said it would make sense for the Fed to begin cutting rates soon.

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“[A cut] is appropriate given how much inflation has fallen, both faster and in a more broad way than the Federal Reserve thought even six or nine months ago,” Konczal said. “The Fed is targeting a level of inflation that is just not the reality right now in the economy.”

The Federal Reserve has a pivotal decision to make in the coming months — when to start cutting interest rates after an aggressive campaign of rate hikes to combat inflation. Some economists worry that if the Fed doesn’t cut rates soon enough, now that the rise in core inflation over the past six months is in line with the Fed’s 2% inflation target, it could damage the labor market and send ripples through the economy.

There is some risk to waiting too long to cut rates, Konczal said. Although the economy is adding jobs and decent wage growth continues, he’s looking for signs of cracks underneath the surface of an otherwise stable labor market. He said that the rate for people leaving their jobs and being hired for new ones has slowed.

If the Fed waits too long to change course, he said there could be some danger of the unemployment rate ticking up too fast.

“Once those things start to fall, they fall very quickly,” he said.

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Several Democratic senators have urged the Fed to begin cutting rates, arguing that it could hurt the economy not to do so as soon as possible, a reminder that the economy will be a big issue in the fall elections. Sen. Sherrod Brown (D-OH) , chair of the Senate Committee on Banking, Housing, and Urban Affairs advocated for Powell to lower rates in a letter addressed to the chairman this week.

Brown wrote his own letter, which highlighted the struggles of Ohioans he said are not able to rent or buy homes, a problem he said has been exacerbated by higher interest rates.

“I hear from so many Ohioans that they feel trapped – those who rent feel like they’ll never be able to afford to buy and those who already own their homes feel like they will never be able to afford a larger one if they decide to grow their family,” Brown wrote.

Sometime after the Fed cuts rates, Americans can expect to see relief in the housing market, where homeowners have struggled with low housing supply and high prices, and high demand for rentals that has also pushed up rental prices.

“The first place where we see the reaction in the economy is the housing market and is in those mortgage applications, like some refinancing, for example,” Lara Rhame, chief U.S. economist and managing director of FS Investments. “The other places we see it are things like auto sales, which are very interest-rate sensitive. It’s worth noting that credit card interest payments have really increased, but that doesn’t move until the Fed actually cuts rates. That’s a shorter term interest rate, but when the Fed cuts, that will start to come down a little bit.”

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William Hauk, associate professor of economics at the University of South Carolina, said it could take a while for the average person to feel a shift in the economy as a result of Fed policy changes.

“How quickly this translates into changes for the rest of the economy is a matter of some debate. Making it easier for people and firms to borrow and/or refinance loans does typically have a positive impact on economic demand,” he said. “And people spending money is good for keeping the economy out of recession. However, this effect typically hits the broader economy with a lag, perhaps as long as 12 to 18 months.”

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New Jersey

Soaking rain, gusty winds looming in N.J. this weekend before cold air sweeps in

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Soaking rain, gusty winds looming in N.J. this weekend before cold air sweeps in


New Jersey residents can expect quiet conditions Thursday night before a warm front lifts northward, bringing increasing clouds and a chance of rain showers by Friday afternoon.

Temperatures are forecast to rise 10 to 15 degrees above normal, reaching the mid-50s, as a precursor to a wet start to the weekend.

The first round of precipitation is expected to arrive late Friday afternoon into the early evening hours. While rainfall is generally expected to be light during this initial phase, there could be an isolated rumble of thunder, according to forecasters from the National Weather Service.

A cold front will pass through the region overnight, likely creating a lull in the rain showers before the next system arrives.

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More widespread rainfall is forecast to return Saturday afternoon and evening as low pressure tracks across the area. During this time, rain could become heavy at times.

Rainfall totals between a half inch and 1.5 inches are predicted across New Jersey through Saturday night. Despite the anticipated volume of water, forecasters say flooding risks should be minimal to none.

Due to the recent stretch of mild temperatures, there is no concern regarding ice jams or river ice hindering runoff.

Temperatures will remain warm for January in New Jersey through the weekend, but heavy rain is expected Friday night into Saturday.National Weather Service

There is some uncertainty in the forecast regarding specific temperatures and wind speeds for Saturday, the weather service said.

Conditions will change significantly on Sunday as a secondary cold front moves through the region, forecasters said. As the rain clears, strong cold air advection will result in a breezy day, with west to northwest wind gusts peaking in the 30 to 40 mph range.

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Temperatures will drop throughout the day, falling into the 20s for most of the area by Sunday night.

Looking ahead to the start of the work week, high pressure will build over the region, bringing dry conditions. Monday and Tuesday are expected to feature clear skies and temperatures near normal for January.

By Tuesday and Wednesday, return flow will develop as high pressure moves off the coast, helping temperatures moderate to about 5 degrees above normal.

No significant weather impacts are expected from Monday through next Thursday.

Current weather radar



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Family grieving after deadly wrong-way crash in Totowa, New Jersey

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Family grieving after deadly wrong-way crash in Totowa, New Jersey


Two people were killed and two others, including a toddler, were injured in a wrong-way crash in Totowa, New Jersey, earlier this week.

Officials confirm the wrong-way driver was off-duty Newark firefighter Albin Fermin, 30. According to Newark officials, Fermin had been with the Newark Fire Department since February 2024 and was assigned to Engine 10.

Wrong-way driver, mother of 2-year-old killed

The crash happened on I-80 just after 2 a.m. Monday.

New Jersey State Police said 60-year-old Joanne Furman was driving west on I-80 with her daughter Imani Furman, 24, and her 2-year-old grandson, when they were struck head-on by Fermin, who was driving the wrong way.

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Fermin and Imani Furman were both killed in the crash.

Police said Joanne Furman was seriously injured and the 2-year-old suffered moderate injuries. Both were taken to a local hospital.

The crash remains under investigation.

Imani Furman and her 2-year-old son, Messiah

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“It wasn’t my daughter’s fault”

Janice Furman, Joanne Furman’s mother and Imani Furman’s grandmother, said her family is devastated.

“It wasn’t my daughter’s fault. It was not her fault,” she said. “They’re showing pictures of [Fermin], his family and the whole team of his fire department. ‘We’re going to miss you.’ Almost like a heroic thing. This isn’t heroic. He killed someone.”

Janice Furman said after undergoing several surgeries, Joanne Furman regained consciousness Wednesday. That’s when the family had to break the news about Imani Furman.

“That’s all she said to me, is, ‘Mommy, she’s gone,’” Janice Furman said.

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She said the family is overwhelmed with grief.

“Imani was a very spirit-filled young lady. She loved life. She loved to sing. She loved to dance,” Janice Furman said.

She said Imani Furman’s only son, Messiah, was her world.

“She won’t see him graduate. She won’t see anything,” Janice Furman said. 

Joanne Furman will have to undergo weeks of physical therapy before she can walk again, her mother said. The family is asking for prayers as they navigate her recovery and plan a funeral.

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Sherrill Announces that Lisa Asare will Continue as President and CEO of the NJ Maternal & Infant Health Innovation Authority  – Insider NJ

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Sherrill Announces that Lisa Asare will Continue as President and CEO of the NJ Maternal & Infant Health Innovation Authority  – Insider NJ


Governor-elect Mikie Sherrill today announced that Lisa Asare will continue as the President and CEO of the NJ Maternal & Infant Health Innovation Authority, and the position will remain in the Gov.-elect’s cabinet. Lisa Asare brings a depth of experience to the role, having held previous positions as Deputy Commissioner of Health Services within the New Jersey Department of Human Services and as Assistant Commissioner of the Division of Family Health Services at the New Jersey Department of Health.

“I have asked Lisa Asare to continue her strong leadership at NJ Maternal & Infant Health Innovation Authority as New Jersey continues to confront the Black Maternal Health crisis. She is known for her ability to bring state government together with practitioners, community partners, and local advocates to develop solutions that improve affordable access to care and health outcomes for women. Together, we’ll invest in programs that build the midwife and doula workforce, and leverage telehealth and remote monitoring services, both during and after pregnancy, to support postpartum moms and healthy infants,” said Governor-elect Mikie Sherrill.

“I am honored to continue to lead the NJ Maternal & Infant Health Innovation Authority. At MIHIA, we are focused not only on delivering physical care, but addressing the social determinants of health, expanding the perinatal workforce, supporting research and data collection, and acting as an incubator for innovation in maternal and infant health. I’m looking forward to continuing to advance this work as part of the Sherrill-Caldwell administration because I know the Governor-elect is committed to these same goals and has already demonstrated that community members have a seat at the table as we work to address healthcare disparities for communities of color across the state,” said Lisa Asare.

Governor-elect Sherrill highlighted the need to address maternal healthcare disparities throughout her campaign for governor and is committed to delivering on those promises. She sat down with moms, providers, community leaders, and advocates at roundtables across the state to pinpoint the key issues state government must address. Specifically, the Sherrill-Caldwell administration will work to build a culturally competent workforce, including doulas and nurse midwives, and ensure that students of color have access to these training programs. Additionally, the administration plans to invest in telehealth services, remote monitoring, and home visiting programs immediately after pregnancy to support postpartum outcomes and healthy infants.

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Lisa Asare is the President and Chief Executive Officer of the NJ Maternal and Infant Health Innovation Authority, a position she was appointed to in March 2024. Prior to this appointment, Ms. Asare served as Deputy Commissioner of Health Services within the New Jersey Department of Human Services. In this role, she oversaw the Division of Medical Assistance and Health Services that administers NJ FamilyCare and the Division of Mental Health and Addiction Services. She also served as the Department lead on First Lady Murphy’s Nurture NJ maternal health initiative.

Ms. Asare previously worked as the Assistant Commissioner of the Division of Family Health Services at the New Jersey Department of Health, for more than 20 years. She redesigned the Division’s approach to addressing black infant mortality and maternal mortality, contributed to the NurtureNJ strategic plan, addressed the social determinants of health by collaborating with other state agencies and non-traditional partners, and leveraged additional state, federal, and philanthropic funding to address emerging issues and the COVID-19 pandemic.



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