Federal Reserve System
Inflation slowed last month thanks to cheaper fuel and airfares.
Jan. 10 Jan. 11 Jan. 12 3,880 3,900 3,920 3,940 3,960 3,980 The stock market wobbled on Thursday morning as investors reacted to fresh data that showed price increases slowed in December but in some corners of the economy, inflation remains stubbornly high. The S&P 500 stock index fluctuated between small gains and losses in […]
Know More
How This Economic Moment Rewrites the Rules
Indeed, the Federal Reserve is trying to cut it off. Jerome H. Powell, the Fed chair, has described the labor market, with twice as many open jobs as unemployed workers, as “unsustainably hot,” and is trying to cool it through aggressive interest rate increases. He and his colleagues have argued repeatedly that a more normal […]
Know More
Good News on Jobs May Mean Bad News Later as Hiring Spree Defies Fed
America’s job market is remarkably strong, a report on Friday made clear, with unemployment at the lowest rate in half a century, wages rising fast and companies hiring at a breakneck pace. But the good news now could become a problem for President Biden later. Mr. Biden and his aides pointed to the hiring spree […]
Know More
With Surge in July, U.S. Recovers the Jobs Lost in the Pandemic
U.S. job growth accelerated in July across nearly all industries, restoring nationwide employment to its prepandemic level, despite widespread expectations of a slowdown as the Federal Reserve raises interest rates to fight inflation. Employers added 528,000 jobs on a seasonally adjusted basis, the Labor Department said on Friday, more than doubling what forecasters had projected. […]
Know More
A Fed Pivot? Not Yet, Policymakers Suggest, as Rapid Inflation Lingers.
Federal Reserve officials on Tuesday made clear that they expected to continue raising rates to try to choke off the most rapid inflation in decades, putting them at odds with investors who had become more sanguine about the outlook for interest rate moves. Stocks prices rose following the Fed’s meeting last week, as investors celebrated […]
Know More
Fed’s Kashkari says officials are ‘a long way’ from backing off inflation fight.
Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, suggested on Friday that markets had gotten ahead of themselves in anticipating that the central bank — which has been raising interest rates swiftly this year — would soon begin to back off. “I’m surprised by markets’ interpretation,” Mr. Kashkari said in an interview. […]
Know More
Pay growth and prices picked up, keeping the Fed on track for rate increases.
Wages, prices and consumer spending all continued to climb, the latest government data showed Friday — fresh evidence that the economy remains resilient amid fear of a recession, but also that inflation is likely to remain a vexing problem for the Federal Reserve. Consumer prices climbed 6.8 percent over the year through June, according to […]
Know More
U.S. Economy Shows Another Decline, Fanning Recession Fears
A key measure of economic output fell for the second straight quarter, raising fears that the United States could be entering a recession — or perhaps that one had already begun. Gross domestic product, adjusted for inflation, fell 0.2 percent in the second quarter, the Commerce Department said Thursday. That drop followed a decline of […]
Know More
How U.S. Inflation Expectations Are Being Shaped by Consumer Choices
Economic policymakers are razor focused on inflation expectations after more than a year of rapid price increases. Consumers explain how they’re thinking about rising costs. July 27, 2022 Inflation started in the bacon aisle for Dan Burnett, a 58-year-old former medical center administrator who lives in Margaretville, N.Y. Last summer, he began to notice that […]
Know More