JULY 18, 2022 – INFLATION KEEPS CLIMBING US inflation rose again last month hitting a 41-year high of 9.1 percent, up from 8.6 percent last month. The primary drivers were gasoline, shelter and food. Analysts are now debating whether the Fed will raise rates at their next meeting by 1 percent, rather than the 0.75 percent that was expected. The …
July 11, 2022 — Employment Holds Steady in the Face of a Slowing Economy
JULY 11, 2022 – EMPLOYMENT HOLDS STEADY IN THE FACE OF A SLOWING ECONOMY The US economy added 372,000 jobs in June extending a strong streak of gains despite the signs of a slowing economy. The average rate of new jobs added for the last three months is 400,000. The unemployment rate remained at 3.6%, holding at that level for …
July 5, 2022 — Consumer Spending Slows
JULY 5, 2022 – CONSUMER SPENDING SLOWS US consumer spending slowed in May, increasing by 0.2 percent; the smallest gain seen in 2022; down from a revised 0.6 percent gain in April. The Federal Reserve Bank of Atlanta is estimating output contracted 1 percent during the second quarter, following a 1.6 percent contraction experienced in Q1. Two consecutive quarters of …
June 27, 2022 — Fed Chair Says Controlling Inflation is Critical
JUNE 27, 2022 – FED CHAIR SAYS CONTROLLING INFLATION IS CRITICAL Federal Reserve Chairman Jerome Powell says getting inflation back down to the Fed’s 2 percent target is of prime importance, even if it tips the economy into recession. As of May, inflation sat at 8.6 percent, a 40-year high. He said the soft-landing the have been aiming for could …
June 20, 2022 — Fed Ups Rates by 0.75 Percent…
JUNE 20, 2022 – FED UPS RATES BY 0.75 PERCENT WITH A SIMILAR RISE POSSIBLE IN JULY The Federal Reserve instituted the largest rate hike since 1994 when it called for a 0.75 percent increase on Wednesday. This raises the federal funds rate from 0.75%-1% to 1.5%-1.75%. This latest increase has followed 0.5% increases in March and May of this …
June 13, 2022 — Inflation Jumps in May to 40-Year High
JUNE 13, 2022 – INFLATION JUMPS IN MAY TO 40-YEAR HIGH Just ahead of this week’s Federal Reserve meeting, where expectations are for a 0.5 percent rate hike, inflation data for May was released. After a slight pullback in April, inflation was up 8.6 percent year over year. High inflation is forcing the Fed to institute the fastest series of …
June 6, 2022 — Jobs Report Cools, but It’s Not Bad News
JUNE 6, 2022 – JOBS REPORT COOLS, BUT IT’S NOT BAD NEWS The US economy added 390,000 jobs in May, down from the 436,000 new jobs created in April. The number is still robust but indicates the economy might be slowing. The unemployment rate held steady at 3.6 percent. Annual wage gains slowed in May, home sales slipped to 5.9 …
May 31, 2022 — Spending, Inflation and a Recession
MAY 31, 2022 – SPENDING, INFLATION AND A RECESSION US households boosted spending in April, while the savings rate fell to a 14-year low, implying consumers are using savings to keep up with inflation. Consumer spending rose 0.9 percent last month, while inflation decelerated slightly to 6.3 percent from 6.6 percent a month earlier. Elevated savings and borrowing capacity and …
May 23, 2022 — Powell Favors Lower Inflation over Full Employment
MAY 23, 2022 – POWELL FAVORS LOWER INFLATION OVER FULL EMPLOYMENT Fed Chair Jerome Powell hopes to bring down inflation while preserving a strong labor market but admits “some pain could be involved.” Powell was speaking at The Future of Everything Festival last week. He said it seems the unemployment rate consistent with stable inflation is likely well above 3.6 …
May 16, 2022 — Powell Confirmed to Second Term as Fed Chairman
MAY 16, 2022 – POWELL CONFIRMED TO SECOND TERM AS FED CHAIRMAN Fed Chair Jerome Powell was nominated to a second 4-year term last week. His primary role now is trying to tame inflation that is running at a 40-year high. Powell said Thursday the Fed is prepared to act aggressively to bring inflation down to its 2 percent target. …