MARCH 18, 2024 — FED’S CAUTION ON RATES JUSTFIED AS INFLATION PICKS UP IN FEBRUARY Inflation remained persistent as consumer prices rose 0.4 percent in February, up from 0.3 percent in January. Compared to a year ago, prices were up 3.2 percent, ahead of January’s 3.1 percent annual pace. Core prices, which exclude food and energy, were up 0.4 percent …
March 11, 2024 — 275,000 New Jobs Added in February
MARCH 11, 2024 – 275,000 NEW JOBS ADDED IN FEBRUARY The US economy added 275,000 jobs in February, while the unemployment rate rose to 3.9 percent, up from 3.7 percent in January. The numbers beat analysts’ expectations of 200,000 new jobs. The Labor Department’s report adjusted down the December new jobs to 290,000 (-43K) and January’s to 229,000 (-124K) from …
March 4, 2024 — Fed’s Preferred Inflation Index Running at 2.8%
MARCH 4, 2024 – FED’S PREFERRED INFLATION INDEX RUNNING AT 2.8% The core personal consumption index (PCE), the Fed’s preferred inflation index, increased 0.4 percent In January and is up 2.8 percent from a year ago. The numbers met broad expectations. Headline PCE, which includes food and energy, was up 0.3 percent for the month and 2.4 percent year over …
February 26, 2024 — Inflation Expected to Tick Up
FEBRUARY 26, 2024 – INFLATION EXPECTED TO TICK UP The Personal Consumption Index (PCE) will be released Thursday this week, the Fed’s preferred inflation indicator. Economists are expecting a core reading, which excludes food and energy, to be up 0.4 percent. That is double December’s 0.2 percent, which means annual inflation will be tracking above the Fed’s 2 percent target. …
February 20, 2024 — The Inflation Rate Remains Stubborn
FEBRUARY 20, 2024 – THE INFLATION RATE REMAINS STUBBORN Inflation was unexpectedly high in January. Consumer prices were up 3.1 percent last month, proving the Fed’s reticence to lower interest rates is justified. The Fed fears a rebound in inflation and has chosen to wait rather than act too quickly. Their targeted inflation rate is 2 percent, and it is …
February 12, 2024 — Jobless Claims Fall, Fed Calls for Patience
FEBRUARY 12, 2024 – JOBLESS CLAIMS FALL, FED CALLS FOR PATIENCE Hopes for a rate cut in March have been crushed. January’s consumer price index will be released this week, but in the run up, it was reported last week that the labor market remains robust. Initial filings for unemployment insurance were lower last week as employers kept workers on …
February 5, 2024 — Fed Holds Rates Steady and Job Market Booms
FEBRUARY 5, 2024 – FED HOLDS RATES STEADY AND JOB MARKET BOOMS The Fed met last week, and as expected, chose to keep interest rates steady; they did indicate rate cuts are possible, but not imminent. The federal funds rate remains in a range of 5.25 to 5.5 percent, the highest it has been in more than 20 years. The …
January 29, 2024 — GDP Rises to 3.3 Percent in Q4
JANUARY 29, 2024 – GDP RISES TO 3.3 PERCENT IN Q4 The US economy grew at an annualized rate of 3.3 percent in the last quarter of the year, significantly beating analysts’ expectations for 2 percent. Record holiday retail spending was a factor in pushing the growth rate, as well as spending by the government. For 2023, the full year …
January 22, 2024 — US Labor Market Continues to Show Strength
JANUARY 22, 2024 – US LABOR MARKET CONTINUES TO SHOW STRENGTH The Labor Department reported the number of people applying for unemployment benefits fell to its lowest level in more than a year, reinforcing the resilient labor market despite high interest rates that are in place to cool inflation. Jobless applications fell to 187,000 for the week ended January 16, …
January 16, 2024 — Inflation Ticks Up to 3.4 Percent in December
JANUARY 16, 2023 – INFLATION TICKS UP TO 3.4 PERCENT IN DECEMBER The inflation rate rose in December to 3.4 percent from a year ago, a 0.3 percent rise from November, and a bit higher than expected. Though still well above the Fed’s target of 2 percent, inflation has remained below 4 percent since May. Wages, adjusted for inflation, were …