What is most notable from Friday’s consumer sentiment data is the plunge in year-ahead inflation expectations to 3.3% from 4.2%, an enouraging sign for the Fed in its effort to restore price stability. … READ MORE >
Economics
Retail sales rise more than expected amid labor market softening
Retail sales rose more than expected in May, pointing to continued resilience in spending that might push a recession further down the road. The strong sales figure, though, was reported as layoffs continued to increase. … READ MORE >
Fed pauses rate hikes while signaling a tightening bias
The Federal Open Market Committee on Wednesday kept its policy rate in a range between 5% and 5.25% while signaling that it will most likely hike the federal funds rate by 25 basis points at least twice before the end of the year. … READ MORE >
Inflation relief in the pipeline as food, gas and service prices ease
Top-line U.S. inflation is moving back toward levels where it is appropriate for the Federal Reserve to pause in its efforts to restore price stability. … READ MORE >
Initial jobless claims spike to highest since 2021
Total new filings for jobless benefits rose to 261,000 last week, the highest since October 2021, the Labor Department reported on Thursday. … READ MORE >
Interest rate outlook: Debt ceiling standoff raised the cost of doing business
The Treasury’s need to sell $1.1 trillion in debt along with a strong probability of another Federal Reserve rate hike or two will push interest rates higher, raising the cost of doing business. … READ MORE >
The wealth effect and the Great Resignation
As household balance sheets have ballooned for older workers, many have retired. The implications are only now beginning to be understood. … READ MORE >
Economy added 339,000 jobs in blowout May employment report
The unemployment rate increased to 3.7% as workers rejoined the labor force. … READ MORE >
Initial jobless claims inch up, yet labor market remains tight
Initial jobless claims inched up by 2,000 last week to 232,000, slightly lower than expectations, according to the Labor Department on Thursday. … READ MORE >
Job openings exceed 10 million as labor market imbalance widens
With 10.1 million job vacancies in April, the openings-to-unemployed ratio—a proxy for labor demand and supply mismatches—surged to 1.79 from 1.64 previously. … READ MORE >