After nearly two years of raising the federal funds rate to restore price stability, the Federal Reserve is poised to all but declare that campaign to be over at its meeting next week. While the Federal Open Market Committee is likely to keep its policy statement largely unchanged, that statement ... READ MORE >
inflation
Industrial production posts biggest drop this year amid strikes
Industrial production dropped by more than expected in October as the United Auto Workers strike was felt in the economy. Production of motor vehicle parts fell by 10%, marking the biggest drop since the beginning of the pandemic. The industrial production index declined by 0.6% on the month, according ... READ MORE >
Retail sales and producer inflation fall in October
Government data for October's retail sales and producer inflation has raised the probability of a soft landing by a significant margin. While sales slowed, the data came in higher than expected. When considered with an upward revision to September's reading, October's retail sales indicated ... READ MORE >
U.S. October jobs report: Moderation in hiring as wage gains outpace inflation
Hiring in the American economy moderated in October, pointing to a cooler pace of growth and inflation that is a much-needed elixir following the torrid pace of hiring and expansion of recent months. The economy added 150,000 jobs in October with the unemployment rate at 3.9%, the Bureau of Labor ... READ MORE >
Spending stayed robust in September as inflation steadied
The U.S. economy maintained its momentum in September with personal spending that was stronger than forecasted. But even with the booming consumer demand, inflation ticked up only slightly, driven largely by energy and travel service prices. Spending rose by 0.7% on the month, while the personal ... READ MORE >
Resilient U.S. economy grows 4.9% in third quarter
Despite a bevy of headwinds, a resilient U.S. economy in the third quarter expanded at a 4.9% rate on a seasonally adjusted annualized basis and at a 2.9% rate on a year-ago basis. The top-line rise in GDP was turbocharged by strong increases in household spending, inventory building and gross ... READ MORE >
Consumer sentiment hits 5-month low amid elevated inflation expectations
Consumer sentiment this month dropped to the lowest level since May, according to preliminary October data in the University of Michigan survey released Friday. The decline stems from the rebound in inflation, high gasoline prices and weakened expectations due to a looming government shutdown. More ... READ MORE >
Consumer price index: Volatility in energy and gas makes price stability elusive
Volatility in energy and gasoline prices, along with stubborn housing and rent costs, were the major drivers of inflation in the September consumer price index. Both illustrate the difficulties in restoring price stability, and given growing risks to oil prices linked to the outbreak of hostilities ... READ MORE >
Producer inflation rose more than forecast in September
September's producer inflation topped forecasts as energy prices continued to rise. The data continued to suggest that strong economic activity carried over from the summer, in line with our forecast of a 3.1% growth in gross domestic product for the third quarter. Looking ahead, though, as economic ... READ MORE >
American consumers remain resilient as shutdown looms
Despite a rise in overall inflation because of higher oil prices, core inflation and spending volume were softer in August, adding to the optimism projected by the Federal Reserve recently that the economy can achieve a soft landing. The personal consumption expenditures price index—the Fed's preferred ... READ MORE >