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WASHINGTON (AP) From Wall Street traders to car dealers to home buyers, Americans are eager for the Federal Reserve to start cutting interest rates and lightening the heavy burden on borrowers.

The Fed is widely expected to do so this year probably several times. Inflation, as measured by its preferred gauge, rose in the second half of 2023 at an annual rate of about 2%  the Fed’s target level. Yet this week, several central bank officials underscored that they werent ready to pull the trigger just yet.

Why, with inflation nearly conquered and the Fed’s key rate at a 22-year high, isn’t now the time to cut?

Most of the Fed’s policymakers have said they’re optimistic that even as the economy and the job market keep growing, inflation pressures will continue to cool. But they also caution that the economy appears so strong that there’s a real risk that price increases could spike again.

And some are worried that if they cut rates now and inflation re-accelerates, then the Fed could be forced into an about-face and have to raise rates again.

“History tells many stories of inflation head-fakes,” said Tom Barkin, president of the Federal Reserve Bank of Richmond, in a speech Thursday.

Inflation had seemed defeated in 1986, Barkin noted, when Paul Volcker was Fed chair.

The Fed reduced rates, but inflation then escalated again the following year, causing the Fed to reverse course,” he said.

“I would love to avoid that roller-coaster if we can, said, Barkin, who is among 12 Fed officials who vote on interest rate policy this year.

Several officials have said they want more time to see if inflation continues to subside. In the meantime, they note, the economy is solid enough that it can thrive without any rate cuts. Last month, for example, Americas employers delivered a burst of hiring, and the unemployment rate stayed at 3.7%.

Theyre going to be glacial, and take their time, said Steven Blitz, chief US economist at GlobalData TS Lombard. Theyre willing to say, We dont know, but we can afford to wait so were going to wait. “

The sturdiness of the economy has also raised questions about just how effective the Feds 11 rate hikes have been. If higher borrowing rates are only barely restraining the economy, some officials may conclude that high rates should stay in place longer or that few rate cuts will be needed.

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I dont feel theres a sense of urgency here, Loretta Mester, president of the Cleveland Federal Reserve, told reporters Tuesday. I think later this year, if things evolve as anticipated, we would be able to start moving the rate down.

Yet their caution carries risks. Right now, the economy appears on track for a soft landing,” in which inflation would be defeated without causing a recession or high unemployment. But the longer that borrowing rates stay high, the higher the risk that many companies and consumers would stop borrowing and spending, weakening the economy and potentially sending it into a recession.

High rates could also compound the struggles of banks that are saddled with bad commercial real estate loans, which would be harder to refinance at higher rates.

The high cost of borrowing has become a headache for David Kelleher’s Chrysler-Jeep dealership just outside of Philadelphia. Just 2 1/2 years ago, Kelleher recalled, his customers could get an auto loan below 3%. Now, they’re lucky to get 5.5%.

Customers who had monthly car lease payments of, say, $400 three years ago are finding that with vehicle prices much higher and interest rates up, their monthly payments would be closer to $650. The trend is pushing many of his customers toward lower-priced used cars or no purchase at all.

We need the government to address the interest rates … and understand that theyve accomplished their goal of lowering inflation,” Kelleher said. If interest rates can come down, I think were going to start selling more cars.

Kelleher is likely to get his wish by May or June, when most economists expect the Fed to start reducing its benchmark rate, which is now at about 5.4%. In December, all but two of the 19 policymakers that participate in the Fed’s policy discussions said they expect the central bank to cut rates this year. (Twelve of those 19 actually get to vote on rate policies each year.)

Yet economic growth has accelerated since then. In the final three months of last year, the economy expanded at an unexpectedly strong 3.3% annual rate. Surveys of manufacturers and service-providers, such as retailers, banks, and shippers, also reported that business perked up last month.

Collectively, the latest reports suggest that the economy may not be headed for a soft landing but rather what some economists call a no landing. By that they mean a scenario in which the economy would remain robust and inflation an ongoing threat, potentially stuck above the Fed’s target. Under this scenario, the Fed would feel compelled to keep rates at elevated levels for an extended period.

Powell said last week that while the Fed wants to see continued strong growth, a strong economy does threaten to send inflation up.

I think that is a risk … that inflation would accelerate, Powell said. I think the greater risk is that it would stabilize at a level meaningfully above 2%. … Thats why we keep our options open here and why were not rushing.”

Other officials this week drove home the point that the Fed is trying to balance the risk of cutting rates too soon which might cause inflation to surge again and keeping rates too high for too long, which could trigger a recession.

At some point, the continued cooling of inflation and labor markets may make it appropriate to reduce rates, Andrea Kugler, a recently appointed Fed governor said Wednesday in her first public speech. On the other hand, if progress on disinflation stalls, it may be appropriate to hold the target range steady at its current level for longer.

Some analysts have pointed to signs that the economy is becoming more productive, or efficient, allowing it grow faster without necessarily increasing inflation. Yet productivity data is notoriously hard to measure, and any meaningful improvement wouldn’t necessarily become apparent for years.

Still, maybe the economy can take higher interest rates than we thought in 2019 before the pandemic, said Eric Swanson, an economist at the University of California, Irvine.

If so, that might not just delay the Fed’s rate cuts, but result in fewer of them. Fed officials are still saying they plan to cut rates perhaps three times this year, below the five or six that some market analysts foresee.

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Daly: NHL players won’t play if Olympic ice unsafe

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December 9, 2025

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Daly: NHL players won't play if Olympic ice unsafe

COLORADO SPRINGS, Colo. — NHL deputy commissioner Bill Daly said that if the league’s players feel the quality of the ice at the Olympics in Milan is unsafe, “then we’re not going to play.”

“It’s as simple as that,” Daly told reporters after the NHL board of governors meetings on Monday.

Daly told league owners Monday that he didn’t believe construction issues with the Olympic ice hockey rink were “insurmountable.”

The main hockey arena in Milan is scheduled to be finished Feb. 2. The women’s hockey tournament begins three days later, and the men’s tournament, with NHL players set to participate in the Olympics for the first time in over a decade, begins Feb. 11, leaving very little wiggle room.

The Olympic arenas will feature three games a day for nearly three weeks, which will challenge the resiliency of the ice. Daly categorized the updates the NHL and NHLPA received last week as positive, but said the league was upping its efforts to help see through the arena.

“We have offered and they’re utilizing our ice experts and technicians and outside providers,” Daly said. “We’re basically moving everybody there to try to help get this done in a way that’s acceptable for NHL athletes. And I’m cautiously optimistic it will be fruitful.”

The NHL will have ongoing access to the ice. That will include being on site for a test event scheduled for the main rink from Jan. 9-11.

On Monday, the IIHF acknowledged the two rinks in Milan would be about 3 feet shorter than a standard NHL rink (196.85 feet by 85.3 feet, instead of 200 feet by 85 feet) — which goes against the agreement the NHL and NHLPA signed with the IIHF in July.

Daly said the league found out about the skewed dimensions last week, and he was not sure how it happened. Some federations were made aware earlier, but Daly said nobody raised the issue to him and the league did not notice the difference in several site visits because it wasn’t anything “perceptible to anybody. It’s not like people bring tape measures there.”

But the NHL and NHLPA are willing to look past that for now — though they will insist the rink for the 2030 Olympics in France is built to NHL standards.

“The players association has canvassed the players and apparently they did not believe it to be a big issue, health and safety issue or a competitive issue,” Daly said.

The Pittsburgh Penguins and Nashville Predators played games on a similar-sized rink last month at the Global Series in Sweden; the solution was to move the lines so the missing ice was accounted for in the neutral zone rather than either offensive zone. Daly said they did not receive any feedback from players after those games.

Organizers have insisted there is no Plan B for the Olympic hockey tournament to be held elsewhere if the rink is not ready. Daly said the NHL also doesn’t have a contingency plan yet if it decides the ice is not suitable.

“I mean, it kind of is what it is,” Daly said. “Having said that, if you’re faced with that being the reality, then you have to think about what you do next. “

The NHL will go dark for a two-week period during the Games. Asked if it was possible to reconfigure the schedule if necessary, Daly said he wasn’t sure yet.

“Well, I can’t tell you exactly what we do,” he said. “What I’d say is, I think in emergency-type situations like that in the past, I think we’ve responded appropriately, came up with good solutions and I have no doubt that we’ll be able to come up with good solutions if we’re faced with that.”

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Bruins’ McAvoy nears return after face injury

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December 9, 2025

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Bruins' McAvoy nears return after face injury

  • Kristen ShiltonDec 8, 2025, 02:02 PM ET

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      Kristen Shilton is a national NHL reporter for ESPN.

Charlie McAvoy is on the road to recovery and close to rejoining the Boston Bruins’ lineup.

Boston’s top defenseman has been sidelined since taking a slap shot to the face from Montreal Canadiens defenseman Noah Dobson on Nov. 15. McAvoy suffered what he recently described as a “linear fracture” to the left side of his face that included, he said, “some displacement, and I lost a lot of teeth on the bottom.”

The blueliner was instructed not to eat solid foods until at least six weeks after suffering the injury. He lost 20 pounds in the first week and a half afterward while relegated to a liquid diet. McAvoy said on Monday that he’s mending nicely now though and, after shedding his noncontact jersey at practice, was looking forward to getting back to work with the Bruins.

“Every day I feel better,” he said. “We’re getting it back. We’re getting the chance to do more, skate more, skate longer, and work out off the ice. All those things. We’re making strides, and I’m healing on the fly.”

McAvoy will be on Boston’s upcoming three-game road trip starting on Tuesday in St. Louis, although it’s still unclear when he’ll get the green light to suit up.

“We’ll see,” said McAvoy when asked if he would be ready to face the Blues. “Going on the trip with the expectation and hoping that some point along the way on the trip I’ll be able to get back in.”

It’s not the first time McAvoy has missed time with a significant injury — he just had shoulder surgery in February after getting hurt while representing Team USA at the 4 Nations Face-Off — but this particular ailment was something entirely new.

“It’s been one of the weirdest injuries I’ve ever had,” he said last week. “The feeling of having so much trauma in your mouth. It’s a wild feeling. But we’re doing everything we can to get back fast.”

McAvoy has been forced to consume only what could be made in a blender. He tried some creative options at first — including pulverized chicken and vegetables — but called that a “nonstarter” and carried on with classic soft foods.

“Soups have been my go-to,” said McAvoy, who has gained back about half of the weight he lost. “Early on a lot of milkshakes and ice cream.”

Considering the force of Dobson’s shot — which knocked McAvoy directly onto his back — the Bruins’ blueliner admitted he “knew right away I was in trouble” and is grateful to finally have enough energy to anchor Boston’s backend again.

McAvoy has 14 points in 19 games this season, while pacing the club in ice time with 23:46 per game. The Bruins are 4-5-0 since McAvoy went down and are currently second in the Atlantic Division.

McAvoy isn’t the only injured party Boston hopes to get back soon. David Pastrnak — the Bruins’ leading scorer — has been out since Nov. 26, but he will be on Boston’s road trip as well with sights set on a return.

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Binnington focused on Blues, not Olympics for now

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December 9, 2025

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Binnington focused on Blues, not Olympics for now

  • Associated Press

Dec 8, 2025, 06:29 PM ET

MONTREAL — Jordan Binnington knows the chatter is out there. He’s leaning on the mindset that’s pulled him through tough stretches before.

The goaltender who backstopped Canada at the 4 Nations Face-Off opened the NHL season as the front-runner to start in February’s Milan-Cortina Games. But a sluggish start — for both him and the St. Louis Blues — has raised questions about where he fits in Canada’s Olympic plan.

“I’m aware of what’s going on, and you want to put yourself in the best position to make that team and make it easy for people making the decision,” he told The Canadian Press. “At the same time, I feel like I’ve been around the league for a decent amount of time and I know that if I control my inner world and what I need to do to feel at my best, then the rest will take care of itself. That’s where my focus goes.”

Sunday night was a step in that direction. Binnington made 23 saves in a 4-3 victory over the Montreal Canadiens, thwarting several Grade-A chances — including a last-second look from Canadiens sniper Cole Caufield in the crease — to earn his seventh win this season.

It was a strong outing amid a difficult campaign for the 32-year-old from Ontario, who’s posting career-low stats across the board.

Binnington has a .875 save percentage, ranking 68th leaguewide and sixth-last among goalies with at least 10 games played. His minus-10.86 goals-saved above average, measuring how a goalie compares to the league average, is also fifth-worst according to analytics website Natural Stat Trick.

“Numbers aren’t necessarily where you want them to be,” the 6-foot-2, 172-pound netminder said. “I’ve been approaching it as just focusing on my own process and what I need to feel good at the right time. I’m building my game every day, and that’s all I can do is control what I can control. The more I do that the more things will come out and fall into place.”

Binnington said he hasn’t spoken to Canada’s management team about the Olympic selection less than a month away — Doug Armstrong is both the general manager for St. Louis and the Canadian team.

“We haven’t talked about it at all. I think nothing needs to be said really, just do your job, focus here and the better the St. Louis Blues do, the better that is for that situation as well,” he said.

One thing working in Binnington’s favor is his proven ability to step up in big moments. He led St. Louis to the Stanley Cup in 2019, rising from minor-league goalie to season savior and playoff hero in a few short months.

The fiery netminder — also known for his short temper — showed the same clutch play during the 4 Nations final, turning aside 31 of 33 American shots in Canada’s 3-2 win, including a game-saving desperation glove stop on Auston Matthews in overtime.

“If you’re looking at statistics, you would, you know … but Binnington is such a winner,” Blues coach Jim Montgomery said. “It doesn’t matter the stage, he always has the ability to bounce back because of his mental toughness, his belief in himself, and he was outstanding (Sunday).”

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