The rebound of labor productivity in the second quarter is another sign of why the economy will continue to be on strong footing even as the labor market cools. … READ MORE >
Job openings exceed forecasts as layoffs and quits reach multiyear lows
Job openings continued to point to strong labor demand, staying above forecast at 8.18 million in June. May’s number was also revised up to 8.23 million. … READ MORE >
U.S. July employment report to show a gain of 200,000 jobs
The second, and more important, element of the jobs report will be the direction of the unemployment rate, which has been rising as more people, lured by rising wages, enter the workforce. … READ MORE >
PCE inflation continues to ease in June as income and spending gain
Top-line inflation in the personal consumption expenditures index increased in June by 0.1% and by 2.5% on a year-ago basis. … READ MORE >
Retail sales were unchanged in June but still exceed forecasts
While the economy is cooling down, we believe that the concerns over the so-called death of the American consumer have been exaggerated. … READ MORE >
Producer prices rise 0.2%, but signs still point to lower inflation in Fed’s key gauge
Despite the producer price index coming in stronger than expected on Friday, the Federal Reserve’s most important measure of inflation, the personal consumption expenditures index, should remain near zero in June. … READ MORE >
As economy cools, Fed needs to cut rates
This overall slowing should result in the Federal Reserve’s reducing its federal funds policy rate by 25 basis points in September and December, which would put it a range between 4.75% and 5%. … READ MORE >
Job openings rise as the labor market marches toward normalization
Labor demand remained strong in May, bolstering hirings during the month, the Bureau of Labor Statistics reported on Tuesday. … READ MORE >
Manufacturing sector weakens in June
As the Federal Reserve continues to hold rates at an elevated level, demand for manufacturing goods has been dampened for most of the year. … READ MORE >
June jobs report preview: Beveridge curve implies a balanced labor market as hiring cools
We think it will soon be time for the Fed to cut rates to avoid unnecessary damage to jobs and economic growth. … READ MORE >