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 >
Federal Reserve
Further disinflation in the June consumer price index points to a Fed rate cut
The road is now open to a rate cut by the Federal Reserve in September. Broad-based core goods inflation along with easing energy and transportation costs all continue be the primary factors behind inflation’s decline from 9.1% in June 2022 to its current 3%. … 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 >
Slower pace of hiring in June bolsters case for Fed rate cut
The June jobs report should send a signal to the Fed that with inflation sitting at 2.6%, conditions are aligning for a rate cut in September. … 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 >
Fed’s key inflation gauge continues to cool in May as income increases by 0.5%
The Federal Reserve’s preferred measure of inflation continued to ease in May as the personal consumption expenditures Index remained unchanged on the month and rose by 2.6% from a year ago. … READ MORE >
RSM US Manufacturing Outlook Index: Malaise continues in June
The best that can be said about manufacturing activity in five regional Federal Reserve banks is that it has moved more-or-less sideways over the past three months. … READ MORE >
Slower growth raises prospect of a Fed rate cut
Economic growth appeared much softer in the first five months of the year following the release of key economic data on Thursday. … READ MORE >