Interest rates: Federal Reserve policymakers will meet this week for the first time since they significantly revised the Fed’s operating framework in ways that will likely keep short-term interest rates near zero for years to come. As a result, analysts expect the Fed will keep its benchmark rate unchanged after the two-day meeting that ends Wednesday. It has been pegged at nearly zero since March after the pandemic and the measures taken to contain it essentially shut down the economy. But the statement that Fed policymakers will release Wednesday is expected to contain revisions that reflect the sweeping changes that Fed Chair Jerome Powell announced late last month in how the central bank operates. Read the full story.
Employee retention: Finance chiefs across the country are safeguarding employee retention programs from broader cost-cutting efforts for fear top-ranking employees might leave, The Wall Street Journal reports. Eighty-eight percent of senior managers ranging from vice presidents to C-suite executives said they are worried about losing high-performing office professionals, up 7% from last year, according to a survey by staffing agency Robert Half International Inc. More than one-third of those attributed their anxiety to staff cuts and planned pay freezes, the survey said. Read the full story.
Modest rise: U.S. industrial production slowed to a modest increase of 0.4% in August, far weaker than the strong bounce back recorded in previous months when factories were coming back to life. The slight uptick followed gains of 3.5% in July and 6.1% in June, when the industrial sector, knocked down by the pandemic, began to rebound. For August, manufacturing rose 1% but mining, which includes oil and gas exploration, fell 2.5%, the Federal Reserve reported Tuesday. Production at the nation’s utilities was off 0.4%. See the full report.