Category Archive

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 …

OCTOBER 31, 2022 – DATA RELEASES KEEP THE FED ON TRACK FOR A RATE HIKE THIS WEEK US wages rose in the third quarter by 5 percent, putting more pressure on the Fed to raise rates again this week. The increase is a slight cool down from the second quarter, but not enough to indicate a slowing labor market. Household …

OCTOBER 24, 2022 – FED MEETING NEXT WEEK WITH 0.75 PERCENT INCREASE EXPECTED The Fed will meet on November 1-2 when a 75-basis point rate increase is a near certainty. The markets are waiting to hear the possible magnitude of the Fed’s increase for December, with hopes for a lesser 50-basis points rise. Some Fed officials have been suggesting they …

OCTOBER 17, 2022 – INFLATION REMAINS HIGH THROUGH SEPTEMBER September inflation was up 0.4 percent month-over-month and up 8.2 percent year-over-year. This is down from 9 percent in June, but still close to the highest levels experienced since the early 1980’s.  The news puts pressure on the Federal Reserve to keep raising interest rates to stabilize prices. The core consumer …

OCTOBER 10, 2022 – JOBS REPORT STAYS STRONG, FED’S STRATEGY UNCHANGED The Fed cautioned markets last week that signs of a weakening economy will not indicate the need to cuts rates next year. The Fed intends to keep raising rates and holding them until inflation is under control. A better-than-expected September jobs report did not indicate the labor market is …

OCTOBER 3, 2022 – CONSUMER SPENDING HOLDS DESPITE INFLATION Household spending rose by 0.4 percent in August after being down 0.2 percent in July. The personal consumption index rose 6.2 percent year over year in August, down from a 6.4 percent increase in July.  Core PCE (excluding food and energy) was up 4.9 percent year over year, up from a …

SEPTEMBER 26, 2022 — FED INSTITUTES ANOTHER AGGRESSIVE RATE HIKE The Federal Reserve raised rates by another 0.75 percent last week, the third 0.75 percent raise in a row as the Fed tries to tame inflation.  The Fed expects its terminal-rate, or end point, to reach 4.6 percent in 2023, and indicated they plan to stay aggressive, with rates expected …