Fed shifts rates, oil follows coal, and more

The Federal Reserve took a historic step Thursday by approving a new policy that aims to spur higher inflation and more aggressively push down unemployment, a strategy that will likely keep interest rates at rock bottom for years.

Traditionally, the Fed has taken a balanced approach, lowering interest rates to spur more borrowing and economic activity to create lots of jobs, and increasing rates when the economy ran so hot that it raised the prospect of excessive inflation.

As Democrats and Republicans haggle over the next coronavirus-relief bill, a giant pot of money remains largely unused.

In March, Congress gave the Treasury Department $454 billion to backstop aggressive new lending efforts by the Federal Reserve to distressed businesses and state and local governments. Five months later, more than half—$259 billion—is still uncommitted.

Refiners have always produced fuel using crude oil. Now some are using grease.

A slump in demand for gasoline since the onset of the coronavirus pandemic has several refining companies accelerating their plans to retrofit facilities to produce so-called renewable diesel made from, among other things, used cooking oil from fast-food restaurants.

Nine years ago, Exxon Mobil was the most valuable corporation in the world.

Last week, Dow Jones removed the stock from its industrial index that is supposed to represent the U.S. economy. Exxon’s market capitalization has dropped from $400 billion in 2011 to just $175 billion today, and the oil business is no longer as important to the U.S. economy.