The Federal Reserve is planning to slow the pace of its $120 billion in monthly asset purchases even as it keeps its policy rate at zero, it suggested in its policy statement released on Wednesday. … READ MORE >
Covid-19
Bank of England’s Monetary Policy Committee to focus on economic risk as energy prices surge
At its meeting on Thursday, the Bank of England’s Monetary Policy Committee should be more concerned about the negative impact on the economic recovery from soaring energy prices than about the upward impact on headline inflation. … READ MORE >
Chart of the day: Sales of existing homes drop amid high prices
Existing home sales in August inched down 2.0% to 5.88 million, following an upwardly revised 6.00 million in July. … READ MORE >
Home builders, facing shortage of materials, can’t meet soaring demand
Even as the housing market continues to lead the U.S. economic recovery, home builders, whipsawed by more than a year of dramatic changes fueled by the pandemic, are facing new pressures as they try to meet surging demand. … READ MORE >
FOMC meeting: Prelude to tapering amid global financial turbulence
This week’s FOMC meeting is not likely to include any meaningful announcement on tapering its monthly asset purchases and only a modest change in the Fed’s Summary of Economic Projections and dot plot interest rate forecast. … READ MORE >
Government deficit widens in August as battle over debt ceiling heats up
As another potential showdown over raising the nation’s debt limit looms, the U.S. budget deficit in August reached $170.6 billion, widening the total deficit in the first 11 months of the 2021 fiscal year to $2.711 trillion. … READ MORE >
Buy later, pay later: Consumers postpone purchases amid high prices
The University of Michigan Consumer Sentiment Index rose slightly to 71.0 in September, following a nine-year low of 70.3 in August as consumers felt the impact of the delta variant and rising prices. … READ MORE >
RSM Canada Financial Conditions Index remains solid as election approaches.
Our index is showing that the level of risk priced into financial assets has been consistently lower than normal. … READ MORE >
As the delta variant spread, worried consumers went online to do their shopping
The strong retail sales figures for August were not only a welcome surprise for retailers after months of decline, but they also showed the enduring impact of the pandemic as consumers relied less on human contact and increasingly shopped at home. … READ MORE >
Initial jobless claims rise in the wake of Hurricane Ida
The economic impact of Hurricane Ida was evident in the most recent initial jobless claims data, which rose to 332,000 for the week ending Sept. 11. … READ MORE >