FEBRUARY 27, 2023 – FED BOARD OF GOVERNORS’ MEETING The Fed’s Board of Governors met a week ago to discuss monetary policy. One message that was sent was that a recession is not a certainty. They point to four reasons the current economic situation differs from pre-recessionary periods in the past. They are the “unprecedented” disruption to supply chains since …
February 20, 2023 — Inflation Cools for Seventh Month in a Row
FEBRUARY 20, 2023 – INFLATION COOLS FOR SEVENTH MONTH IN A ROW Consumer prices were up 6.4 percent in January – the seventh straight month of cooling – down from the high of 9.1 percent reported in June. Fed Chair Jerome Powell thinks inflation is on the right track, but to get it down to the Fed’s targeted 2 percent …
February 13, 2023 –Powell Says Inflation is Difficult to Tame
FEBRUARY 13, 2023 – POWELL SAYS INFLATION IS DIFFICULT TO TAME Last week at the Economic Club of Washington DC, Fed Chair Powell said the strong labor market will make bringing inflation down longer and will require higher interest rates than many have been expecting. The latest government data showed unexpected strength in the labor market. Not only were the …
February 6, 2023 –Fed Lifts Rates by 25 bps; Scorching Jobs Report Follows
FEBRUARY 6, 2023 – FED LIFTS RATES BY 25 BPS; SCORCHING JOBS REPORT FOLLOWS The Fed slowed its pace of interest rate hikes by raising rates by 0.25 percent last week to a range of 4.5 to 4.75 percent (highest since 2007) as it tries to cool down the economy and slow down inflation. This was the smallest increase the …
January 30, 2023 — GDP Slows Along with Consumer Spending
JANUARY 30, 2023 – GDP SLOWS ALONG WITH CONSUMER SPENDING US GDP rose by 2.9 percent in the fourth quarter of 2022, down slightly from the 3.2 percent in Q3. The slowdown marks a return to a more normal rate of growth after surging in 2021 after the pandemic. The economy is showing signs of weakening with retail sales falling …
January 23, 2023 — Quarter Point Rate Increase Expected Next Week
JANUARY 23, 2023 – QUARTER POINT RATE INCREASE EXPECTED NEXT WEEK The Fed will be meeting on January 31-February 1 when they are expected to raise rates by 0.25 percent. It is expected the upcoming meeting will focus on how much higher rates will have to rise before pausing rate increases in the spring. The Fed has said slowing increases …
January 17, 2023 — Inflation Below 7 Percent in December
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
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
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
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 …