JUNE 27, 2022 – FED CHAIR SAYS CONTROLLING INFLATION IS CRITICAL Federal Reserve Chairman Jerome Powell says getting inflation back down to the Fed’s 2 percent target is of prime importance, even if it tips the economy into recession. As of May, inflation sat at 8.6 percent, a 40-year high.  He said the soft-landing the have been aiming for could …

JUNE 20, 2022 – FED UPS RATES BY 0.75 PERCENT WITH A SIMILAR RISE POSSIBLE IN JULY The Federal Reserve instituted the largest rate hike since 1994 when it called for a 0.75 percent increase on Wednesday. This raises the federal funds rate from 0.75%-1% to 1.5%-1.75%. This latest increase has followed 0.5% increases in March and May of this …

JUNE 13, 2022 – INFLATION JUMPS IN MAY TO 40-YEAR HIGH Just ahead of this week’s Federal Reserve meeting, where expectations are for a 0.5 percent rate hike, inflation data for May was released. After a slight pullback in April, inflation was up 8.6 percent year over year. High inflation is forcing the Fed to institute the fastest series of …

JUNE 6, 2022 – JOBS REPORT COOLS, BUT IT’S NOT BAD NEWS The US economy added 390,000 jobs in May, down from the 436,000 new jobs created in April. The number is still robust but indicates the economy might be slowing. The unemployment rate held steady at 3.6 percent.  Annual wage gains slowed in May, home sales slipped to 5.9 …

MAY 31, 2022 – SPENDING, INFLATION AND A RECESSION US households boosted spending in April, while the savings rate fell to a 14-year low, implying consumers are using savings to keep up with inflation.  Consumer spending rose 0.9 percent last month, while inflation decelerated slightly to 6.3 percent from 6.6 percent a month earlier.  Elevated savings and borrowing capacity and …

MAY 23, 2022 – POWELL FAVORS LOWER INFLATION OVER FULL EMPLOYMENT Fed Chair Jerome Powell hopes to bring down inflation while preserving a strong labor market but admits “some pain could be involved.” Powell was speaking at The Future of Everything Festival last week.  He said it seems the unemployment rate consistent with stable inflation is likely well above 3.6 …

MAY 16, 2022 – POWELL CONFIRMED TO SECOND TERM AS FED CHAIRMAN Fed Chair Jerome Powell was nominated to a second 4-year term last week.  His primary role now is trying to tame inflation that is running at a 40-year high. Powell said Thursday the Fed is prepared to act aggressively to bring inflation down to its 2 percent target. …

MAY 9, 2022 – RATES RISE BY 0.5 PERCENT AS EXPECTED; FED TO REDUCE ASSET HOLDINGS To slow down inflation, running at a 40-year high, the Federal Reserve raised interest rates last week. Interest rates will go up by 0.5 percent, raising the target range to 0.75%-1%. This is the biggest one-time hike since 2000, and the second of seven …

MAY 2, 2022 – US GDP FALLS IN Q1 AFTER RECORD GROWTH IN 2021 Unexpectedly US GDP fell at a 1.4 percent pace in Q1, below analysts’ expectations for a 1 percent gain. This was a sudden change, given the economy has been performing better than it has in almost 40 years. In comparison, GDP grew 6.9 percent in 2021. …

APRIL 25, 2022 – THE FED IS POISED TO QUELL INFLATION Federal Reserve Chairman Jerome Powell is determined to tame inflation and raise rates “expeditiously” with an aggressive rate hike anticipated next week. It is expected the Fed will move rates up by 0.5 percent at their next meeting as prices are rising at their fastest pace in over 40 …