Category Archive

FEBRUARY 5, 2024 – FED HOLDS RATES STEADY AND JOB MARKET BOOMS The Fed met last week, and as expected, chose to keep interest rates steady; they did indicate rate cuts are possible, but not imminent. The federal funds rate remains in a range of 5.25 to 5.5 percent, the highest it has been in more than 20 years.  The …

JANUARY 29, 2024 – GDP RISES TO 3.3 PERCENT IN Q4 The US economy grew at an annualized rate of 3.3 percent in the last quarter of the year, significantly beating analysts’ expectations for 2 percent.  Record holiday retail spending was a factor in pushing the growth rate, as well as spending by the government. For 2023, the full year …

JANUARY 22, 2024 – US LABOR MARKET CONTINUES TO SHOW STRENGTH The Labor Department reported the number of people applying for unemployment benefits fell to its lowest level in more than a year, reinforcing the resilient labor market despite high interest rates that are in place to cool inflation.  Jobless applications fell to 187,000 for the week ended January 16, …

JANUARY 16, 2023 – INFLATION TICKS UP TO 3.4 PERCENT IN DECEMBER The inflation rate rose in December to 3.4 percent from a year ago, a 0.3 percent rise from November, and a bit higher than expected. Though still well above the Fed’s target of 2 percent, inflation has remained below 4 percent since May. Wages, adjusted for inflation, were …

JANUARY 8, 2024 – EMPLOYERS ADD 216,000 NEW JOBS IN DECEMBER The US economy added 216,000 new jobs in December, the unemployment rate remained unchanged at 3.7 percent, while hourly wages rose by 0.4 percent for the month or 4.2 percent from a year ago. The labor market closed in 2023 far better than expected, with economists expecting the addition …

JANUARY 2, 2024 – ECONOMISTS FORESEE SOFT LANDING FOR 2024 As the economy moved ahead at a steady pace in 2023, inflation has pulled back faster than expected. The Federal Reserve raised interest rates eleven times since early 2022, and the effects of those increases seemed to have worked their way through the US economy without dire consequences. Not only …

DECEMBER 18, 2023 – THE FED KEEPS RATES STEADY, HINTS AT CUTS IN 2024 As expected, the Fed kept interest rates steady at their last meeting of 2023. Slowing inflation has changed the Fed’s focus from raising rates, to determining when it would be appropriate to lower rates from their 22-year high. Fed Chair Jerome Powell is concerned about causing …

DECEMBER 11, 2023 – 199,000 JOBS CREATED IN NOVEMBER AS UNEMPLOYMENT RATE FALLS The US economy added 199,000 new jobs in November and the unemployment rate fell to 3.7 percent. Average hourly wages rose 0.4 percent month-over-month and 4 percent year-over-year. Despite a slowdown in the economy, 199,000 new jobs were created in November, beating economists’ expectations of 190,000 and …

DECEMBER 4, 2023 – CONSUMER SPENDING AND INFLATION COOL IN OCTOBER Consumer spending and inflation were lower in October. The Commerce Department released the news that consumer spending rose 0.2 percent in October, down from 0.7 percent in September, the smalljest increase since May. Inflation cooled as well, with the Fed’s preferred inflation indicator; the personal-consumption index; up 3.5 percent …

NOVEMBER 20, 2023 — RETAIL SALES DECLINE FOR THE FIRST TIME SINCE MARCH October retail sales fell for the first time since March, down 0.1 percent from September when sales rose 0.9 percent. The average gain during the last six months was 0.6 percent. The decline in consumer spending bodes well for inflation, reinforcing hopes for a soft landing. Consumers …