JULY 3, 2023 – KEY INFLATION FIGURE UP ONLY 0.3 PERCENT IN MAY The personal consumption index (PCE), the Fed’s key inflation measure, increased by 0.3 percent for the month of May. Headline PCE is up 3.8 percent for the year, while core PCE (excluding food and energy) is up 4.6 percent. The data indicates a slight easing of inflation …
June 26, 2023 — Powell Testifies Before House Financial Services Committee
JUNE 26, 2023 – POWELL TESTIFIES BEFORE HOUSE FINANCIAL SERVICES COMMITTEE Fed Chair Jerome Powell stated the Fed will not be lowering interest rates until inflation comes down significantly. Further Powell told the committee that it is a “pretty good guess” the central bank will raise rates two more times this year. Inflation pressures remain high and there is a …
June 20, 2023 — Fed Holds Rates Steady as Inflation Slowed to 4 Percent in May
JUNE 20, 2023 – FED HOLDS RATES STEADY, AS INFLATION SLOWED TO 4 PERCENT IN MAY The US Bureau of Labor Statistics announced on Tuesday; just as the Fed’s policy meeting was about to convene; that US CPI rose in May by 4 percent, the lowest reading in two years, down almost 1 percent from the 4.9 percent rate experienced …
June 12, 2023 — Jobless Claims Highest Since October 2021
JUNE 12, 2023 – JOBLESS CLAIMS HIGHEST SINCE OCTOBER 2021 First time US jobless claims totaled 261,000 last week, up 28,000 from the week before and well above expectations for 235,000 claims. This was the highest weekly rate since October 2021, signaling a possible softening of the labor market in the run up to the Fed’s two-day meeting tomorrow, where …
June 5, 2023 — Over 300,000 New Jobs Created in May
JUNE 5, 2023 – OVER 300,000 NEW JOBS CREATED IN MAY The US labor market added 339,000 jobs in May. Despite fears of a recession, the labor market is defying expectations for the second month in a row. The unemployment rate rose to 3.7 percent from 3.4 percent in April, the highest since October 2022 but still near historic lows. …
May 30, 2023 — Hotter than Expected PCE Report
MAY 30, 2023 – HOTTER THAN EXPECTED PCE REPORT Following the recent report showing inflation is runningat a still robust 4.9 percent, the personal consumption expenditures price index (PCE) rose 0.4 percent for April, higher than the 0.3 percent expected. On a year-over-year basis, it is up 4.7 percent. Including food and energy, the PCE is up 4.4 percent from …
May 22, 2023 — As Inflation Remains Entrenched A Rate Cut is Unlikely this Year
MAY 22, 2023 – AS INFLATION REMAINS ENTRENCHED A RATE CUT IS UNLIKELY THIS YEAR As inflation is continuing to run above the Fed’s targeted 2 percent, Atlanta Fed President Raphael Bostic believes there will not be any cuts to the Federal Funds rate in 2023, even if there is a recession. He spoke at the Atlanta Fed’s Financial Markets …
May 15, 2023 — Inflation Cools Slightly in April
MAY 15, 2023 – INFLATION COOLS SLIGHTLY IN APRIL US inflation eased to its lowest level in 5 years, the consumer price index came in at 4.9 percent for April following a 5 percent increase in March. The figure was below analysts’ expectations and is the tenth consecutive month of declines in the year-over-year growth rate. Core CPI (excluding energy …
May 8, 2023 — Rates Rise by 0.25 Percent Followed by a Strong April Job Report
MAY 8, 2023 – RATES RISE BY 0.25 PERCENT FOLLOWED BY A STRONG APRIL JOB REPORT Last week the Federal Reserve approved a tenth rate hike in a little over a year, when they announced a 0.25 percentage point increase in the benchmark Federal Funds rate, which now ranges between 5 and 5.25 percent. This is the highest it’s been …
May 1, 2023 — GDP Up 1.1 Percent, PCE Up 4.2 Percent ahead of Fed Meeting
MAY 1, 2023 – GDP UP 1.1 PERCENT, PCE UP 4.2 PERCENT AHEAD OF FED MEETING US GDP grew at an annualized rate of 1.1 percent for the first quarter of 2023, less than half of the 2.6 percent seen in the fourth quarter of 2022. Analysts had been expecting GDP growth of 2 percent. Consumer prices rose slightly last …