JANUARY 17, 2023 – INFLATION BELOW 7 PERCENT IN DECEMBER December’s inflation rate came in at 6.5 percent, down from 7.1 percent in November and the slowest annual increase since October 2021. The core CPI, excluding energy and food prices, rose 5.7 percent versus 6 percent in November. The increase is still well above the Fed’s target of 2 percent, …

JANUARY 9, 2023 — DECEMBER JOBS NUMBER BEATS EXPECTATIONS The US economy added 223,000 new jobs in December, beating expectations for 200,000 new positions, but it’s the smallest gain in two years. The unemployment rate fell to 3.5 percent, which equals the lowest rate since 1969. Average hourly wages rose 0.3 percent month-over-month and 4.6 percent year-over-year below the 5 …

JANUARY 3, 2023 – A LOOK FORWARD TO INTEREST RATES IN 2023 During 2022 the Fed was faced with unexpected and entrenched inflation, forcing them to aggressively raise rates with seven rate hikes during 2022. Since March 2022, the effective federal funds rate has risen more than 3.5 percent, the steepest climb in recent history. The benchmark rate is now …

DECEMBER 19, 2022 – FED RAISES RATES BY 0.5 PERCENT AS INFLATION EASES The Federal Reserve closed out 2022 by raising rates by 0.5 percent in an aggressive move to curtail inflation that is running at a 40-year high. The benchmark rate is now in a range of 4.25 to 4.5 percent, a 15-year high. This is the seventh time …

DECEMBER 12, 2022 – FED MEETS THIS WEEK, 50 BP RATE HIKE EXPECTED The Federal Reserves has its final meeting of 2022 this Tuesday and Wednesday. Another rate increase is a certainty, and it is anticipated they will raise rates by 0.5 percent this round, after 0.75 percent increases at each of their last four meetings. At a meeting last …

DECEMBER 5, 2022 –STRONG DATA STALLS FED’S HOPES FOR SLOWING INFLATION  In a big data release week, it was reported the US economy grew faster in the third quarter than expected at a 2.9 percent annualized rate.  This marks a rebound from the 0.6 percent and 1.6 percent decreases in Q1 and Q2. As the report shows a strengthening economy, …

NOVEMBER 28, 2022 – FED HOPES TO SLOW THE PACE OF RATE INCREASES A “substantial majority” of policymakers at the Federal Reserve’s November meeting said it would “likely soon be appropriate” to slow the pace of interest rate hikes. According to the minutes of the meeting when the Fed raised rates by 0.75 percent for the fourth time this year, …

NOVEMBER 21, 2022 – RETAIL SALES RISE IN OCTOBER Consumers showed resilience despite rising inflation in October with US retail sales rising 1.3 percent. That is the biggest monthly gain since February of this year and beats economists’ expectations for a 1 percent increase. Retail sales, on an annual basis, were up 8.3 percent compared to 8.6 percent in September. …

NOVEMBER 14, 2022 – INFLATION EASES TO 7.7 PERCENT IN OCTOBER US inflation eased slightly in October up 7.7 percent year-over-year and up 0.4 percent from last month. The data is slightly lower than economists expected.  Core inflation is up 6.3 percent year-over-year and 0.3 percent over October. Even though the pace is easing, it remains well above the Fed’s …

NOVEMBER 7, 2022 – FED DELIVERS THE EXPECTED 75 BP RATE INCREASE The Fed raised rates by 0.75 percent last week as they try to tame high inflation. They have raised rates five times in the last six months and said they will consider the “cumulative tightening of monetary policy” in making its rate decisions from now on. However, they …