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 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 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 …

JANUARY 10, 2022 – 2021 ENDS WITH UNEMPLOYMENT BELOW 4 PERCENT Last month the Fed spoke about accelerating their timetable regarding raising rates, citing persistent inflation and a strengthening job market. Economists are anticipating the first increase will happen in March. The US ended the year by adding 199,000 in December, below the average monthly job growth of 537,000 seen …

DECEMBER 20, 2021 – FED OPENS THE DOOR TO A SPRING RATE HIKE In a major policy shift, the Fed has recognized inflation is an issue and is likely to remain high; as such, they are ready to start raising rates in the spring.  At the conclusion of their 2-day meeting, most of the Fed’s officials have tentatively scheduled three …

DECEMBER 13, 2021 – INFLATION HITS 31-YEAR HIGH; FED MEETS THIS WEEK As a fall out of rising consumer demand and covid-related supply chain issues, the US inflation rate hit a 39-year high in November up 6.8 percent from a year earlier. This is the greatest rise since 1982 and it is the sixth month in a row inflation has …

DECEMBER 6, 2021 – PERSISTENT INFLATION IS WORRYING THE FED The Federal Reserve met last week; they no longer describe US inflation as transitory, and will amend their policy to keep inflation in check.  The Fed is trying to decide how to manage the highest inflation rates in 30 years against a labor market that hasn’t fully recovered from the …

NOVEMBER 29, 2021 –POWELL RENAMED FED CHAIR In a Thanksgiving holiday shortened week, President Biden announced he would be reappointing current Federal Reserve President Jerome Powell to another term.  Lael Brainard will serve as vice-chair. The confirmation of Powell for a second term is to create continuity in an economic environment that is currently experiencing a large amount of uncertainty, …

NOVEMBER 22, 2021 — RETAIL SPENDING UP DESPITE INFLATION The Commerce Department announced retail spending in October was up 1.7 percent, more than double the 0.8 percent seen in September, even though prices have been increasing at rates not seen since the 1990’s. The consumer price index was up 6.2 percent year over year in October. With retail sales coming …

NOVEMBER 15, 2021 — US INFLATION HITS 31-YEAR HIGH US inflation rose to 6.2 percent for October, while the corresponding core inflation index (excluding food and energy) was up 4.6 percent year over year.  This was the fastest 12-month pace since 1990 and the fifth month in a row inflation has exceeded 5 percent. Month over month, inflation increased by …