APRIL 18, 2022 – INFLATION HITS RECORD HIGHS US inflation rose again in March, up 8.5 percent year-over-year, the largest increase since December 1981. It is the fifth month in a row inflation has hit a new 40-year high. The Fed raised rates last month by 0.25 percent and is expected to raise rates again multiple times this year to …
April 11, 2022 — The Fed is Poised to Raise Rates by 0.5 Percent
APRIL 11, 2022 – THE FED IS POISED TO RAISE RATES 0.5 PERCENT Investors are anticipating a half percentage point increase in rates at the Fed’s May 3-4 meeting and at the following meeting in June. They are prepared to start shrinking their asset portfolio as soon as the May meeting. The Fed bought nearly $1.5 trillion in government debt …
April 4, 2022 — March Jobs Report Comes in Strong
APRIL 4, 2022 – MARCH JOBS REPORT COMES IN STRONG Employers added 431,000 new jobs in March and hiring in January and February was stronger than originally reported. It is the 11th straight month of job gains above 400,000, the longest stretch of growth in records dating back to 1939. The unemployment rate fell to 3.6 percent in March from …
March 28, 2022 — Fed Focuses on Raising Rates Faster to Curtail Inflation
MARCH 28, 2022 – FED FOCUSES ON RAISING RATES FASTER TO CURTAIL INFLATION Fed Chair Jerome Powell spoke to the National Association for Business Economics last week; he said, “inflation is much too high” and wants the central bank to “take the necessary steps to ensure a return to price stability.” He supports greater increases in the borrowing rate if …
March 21, 2022 — The Fed Raises Interest Rates by 0.25 Percent
MARCH 21, 2022 – THE FED RAISES INTEREST RATES BY 0.25 PERCENT As anticipated, the FOMC, with a vote of 8-1, agreed to a quarter point rise in interest rates last week. The dissenter, St. Louis’ Bullard, wanted rates to rise 0.5%. Most officials expect the fed-funds rate to rise to at least 1.875% by the end of this year, …
March 14, 2022 — Inflation Rises to a 40-year High in February
MARCH 14, 2022 – INFLATION RISES TO A 40-YEAR HIGH IN FEBRUARY On Thursday, data was released showing inflation in February came in annually at 7.9 percent, the highest since 1982. The consumer price index is rising both on a monthly and annual basis, driven by rising energy costs, food, housing and consumer goods. Labor shortages, supply chain disruptions and …
March 7, 2022 — Hirings Soar as Unemployment Nears Pre-Pandemic Levels
MARCH 7, 2022 – HIRINGS SOAR AS UNEMPLOYMENT NEARS PRE-PANDEMIC LEVELS The labor market is showing strong hiring and is nearing levels seen just before the pandemic took hold. Employers added 678,000 new jobs in February, the biggest gain in seven months, while the unemployment rate fell to 3.8 percent from 4 percent in January. This is edging closer to …
February 28, 2022 — US PCE Up 5.2 Percent in January
FEBRUARY 28, 2022 – US PCE UP 5.2 PERCENT IN JANUARY The Fed looks at the PCE (core personal consumption expenditures) index as their primary inflation index. It rose 5.2 percent from a year ago, the highest level since 1983. If you include food and energy, the PCE is up 6.1 percent, the strongest gain since 1982. The Commerce Department …
February 21, 2022 — Fed Disregards Half-Percent Rate Increase in March
FEBRUARY 21, 2022 – FED DISREGARDS HALF-PERCENT RATE INCREASE IN MARCH Many investors have been betting on a 0.5 percent rate increase in March, but the Fed pushed back. New York Fed President John Williams spoke Friday and said, “There’s really no kind of compelling argument that you have to be faster right in the beginning. We can steadily move …
February 14, 2022 — Inflation Keeps Rising Putting Pressure on Interest Rates
FEBRUARY 14, 2022 – INFLATION KEEPS RISING PUTTING PRESSURE ON INTEREST RATES Inflation rose again in January by 0.5 percent, it’s now running at a 7.5 percent annual rate, the highest since 1982. For comparison, inflation was at 1.8 percent just ahead of the start of the pandemic. The core-price index, excluding food and energy, climbed to 6 percent in …