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. …

May 2, 2022 — US GDP Falls in Q1 after Record Growth in 2021

MAY 2, 2022 – US GDP FALLS IN Q1 AFTER RECORD GROWTH IN 2021 Unexpectedly US GDP fell at a 1.4 percent pace in Q1, below analysts’ expectations for a 1 percent gain. This was a sudden change, given the economy has been performing better than it has in almost 40 years. In comparison, GDP grew 6.9 percent in 2021. …

April 25, 2022 — The Fed is Poised to Quell Inflation

APRIL 25, 2022 – THE FED IS POISED TO QUELL INFLATION Federal Reserve Chairman Jerome Powell is determined to tame inflation and raise rates “expeditiously” with an aggressive rate hike anticipated next week. It is expected the Fed will move rates up by 0.5 percent at their next meeting as prices are rising at their fastest pace in over 40 …

April 18, 2022 — Inflation Hits Record Highs

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 …