March 21, 2022 — The Fed Raises Interest Rates by 0.25 Percent

MARCH 21, 2022 – THE FED RAISES INTEREST RATES BY 0.25 PERCENT As anticipated, the FOMC, with a vote of 8-1, agreed to a quarter point rise in interest rates last week. The dissenter, St. Louis’ Bullard, wanted rates to rise 0.5%.  Most officials expect the fed-funds rate to rise to at least 1.875% by the end of this year, …

March 14, 2022 — Inflation Rises to a 40-year High in February

MARCH 14, 2022 – INFLATION RISES TO A 40-YEAR HIGH IN FEBRUARY On Thursday, data was released showing inflation in February came in annually at 7.9 percent, the highest since 1982. The consumer price index is rising both on a monthly and annual basis, driven by rising energy costs, food, housing and consumer goods.  Labor shortages, supply chain disruptions and …

March 7, 2022 — Hirings Soar as Unemployment Nears Pre-Pandemic Levels

MARCH 7, 2022 – HIRINGS SOAR AS UNEMPLOYMENT NEARS PRE-PANDEMIC LEVELS The labor market is showing strong hiring and is nearing levels seen just before the pandemic took hold. Employers added 678,000 new jobs in February, the biggest gain in seven months, while the unemployment rate fell to 3.8 percent from 4 percent in January. This is edging closer to …

February 28, 2022 — US PCE Up 5.2 Percent in January

FEBRUARY 28, 2022 – US PCE UP 5.2 PERCENT IN JANUARY The Fed looks at the PCE (core personal consumption expenditures) index as their primary inflation index.  It rose 5.2 percent from a year ago, the highest level since 1983. If you include food and energy, the PCE is up 6.1 percent, the strongest gain since 1982. The Commerce Department …

February 21, 2022 — Fed Disregards Half-Percent Rate Increase in March

FEBRUARY 21, 2022 – FED DISREGARDS HALF-PERCENT RATE INCREASE IN MARCH Many investors have been betting on a 0.5 percent rate increase in March, but the Fed pushed back. New York Fed President John Williams spoke Friday and said, “There’s really no kind of compelling argument that you have to be faster right in the beginning. We can steadily move …

February 14, 2022 — Inflation Keeps Rising Putting Pressure on Interest Rates

FEBRUARY 14, 2022 – INFLATION KEEPS RISING PUTTING PRESSURE ON INTEREST RATES Inflation rose again in January by 0.5 percent, it’s now running at a 7.5 percent annual rate, the highest since 1982.  For comparison, inflation was at 1.8 percent just ahead of the start of the pandemic.  The core-price index, excluding food and energy, climbed to 6 percent in …

February 7, 2022 — Employment Soars in January Despite the Virus

FEBRUARY 7, 2022 – EMPLOYMENT SOARS IN JANUARY DESPITE THE VIRUS The Labor Department announced US payrolls grew by 467,000 in January, far exceeding expectations for 150 ,000 new jobs. Job growth for November and December was adjusted upward by 709,000 positions.  It is thought the January job number would have been even higher had it not been for the …

January 31, 2022 — Fed Set on Raising Rates in March

JANUARY 31, 2022 – FED SET ON RAISING RATES IN MARCH With consumer prices increasing at a 7 percent annual rate, the Federal Reserve said last Wednesday it is looking to lift interest rates in March, and reaffirmed plans to end its bond purchases that month, in an attempt to tame inflation. “The committee is of a mind to raise …

January 24, 2022 — Jobless Claims Rise but Fundamentals Remain Unchanged

JANUARY 24, 2022 – JOBLESS CLAIMS RISE BUT FUNDAMENTALS REMAIN UNCHANGED New jobless claims last week were up to their highest level since October 2021 at 286,000, up 55,000 from the previous week.  The surge of Covid is disrupting businesses, but the fundamentals of the labor market have not changed.  There remains a huge demand for workers, and it is …

January 17, 2022 — As Inflation Soars, The Fed Confirms its Need to Act

JANUARY 17, 2022 – AS INFLATION SOARS, THE FED CONFIRMS ITS NEED TO ACT The central bank has confirmed their focus has shifted to controlling the persistent inflation that has taken hold.  In her confirmation hearing last week, Federal Reserve Governor Lael Brainard told Congress efforts to reduce inflation are the Fed’s “most important task.” It is expected the first …