Job openings in the United States fell for the third straight month in June as the labor market started to loosen up, the Bureau of Labor Statistics reported on Tuesday. Job openings—which represent labor demand—have been the main target of the Federal Reserve to lessen the second-round impact on ... READ MORE >
inflation
Have we entered a “goods-cession” or goods fatigue?
In the June 2022 real consumer spending data released by the Bureau of Economic Analysis on Friday, on a three-month annualized basis, spending on both durable and non-durable goods declined for the second consecutive month, furthering the evidence we are in the midst of a “goods-cession.” After a ... READ MORE >
American spending and income eroded by multi-decade high inflation
American consumer spending barely kept up with price gains in June as the Federal Reserve's key inflation gauge—the Personal Consumption Expenditure price index—reached a new multi-decade high, according to government data released Friday. Additionally, personal income declined for the first time since ... READ MORE >
FOMC policy decision: Fed hikes policy rate by 75 basis points
The Federal Reserve’s price stability campaign advanced at its Wednesday meeting via a hike in the federal funds policy rate by 75 basis points to a range between 2.25 and 2.5%. The central bank stuck to its pace of balance sheet reduction. At this critical juncture, with the policy rate residing in ... READ MORE >
Monetary policy tightening, the bond market and the business cycle
Central banks in developed economies are contending with a series of shocks that have threatened price stability and, ultimately, economic growth. Now, these shocks, which include inflation, interest rate increases and energy market turmoil, are all showing up in fixed income markets. With consumer ... READ MORE >
Consumer confidence drops as new home sales slump
Consumer confidence continued to fall in July to the lowest level since February 2021 amid inflation angst and an economic slowdown, the Conference Board reported on Tuesday. The top-line number fell to 95.7 from 98.4 in June, driven by broad declines across all components. But there was good news: ... READ MORE >
Wholesale gas futures point to drop below $4 a gallon
An overheating economy and hot summer weather have put the American public on edge as rising inflation has deflated domestic purchasing power. Hot tempers and hotter thermostats may, however, find some relief during the final six weeks of summer through an easing in gasoline prices. Wholesale ... READ MORE >
Latest jobless claims and producer inflation show upside surprises
New filings for jobless benefits last week rose by 3.8% to 244,000—the highest level since November, according to government data released Thursday. The steady increase in new jobless claims, which are a proxy for layoffs, were in line with hiring freezes and layoff announcements coming from the ... READ MORE >
U.S. June CPI: Persistent top-line inflation hits 9.1%
The past few years have been characterized by a series of economic shocks that have wreaked havoc with just about every area of the American economy. The most recent set of energy shocks has sent the top-line consumer price index to 9.1%, a four decade high, on the back of an 11.2% increase in ... READ MORE >
Chart of the day: Service sector grows at slowest pace in two years
The service sector continued to moderate, despite the current shift from spending on goods to services. Higher inflation, mostly from energy and food prices, kept consumers away from spending more on discretionary services. The Institute for Supply Management's service index inched down to 55.3 in ... READ MORE >