Progress toward normalization in lending practices generally halted in the first quarter as the Federal Reserve turned more hawkish amid the rebound in inflation, according to data in a Fed report released on Monday. The Senior Loan Officer Opinion Survey on Bank Lending Practices showed that demand ... READ MORE >
inflation
Fed holds rates steady as rebound in inflation hampers progress
Citing a lack of progress in reducing inflation, the Federal Reserve kept its policy rate unchanged at 5.5% at its meeting on Wednesday, the same rate it has had since July. The policy rate continues to be highly restrictive and will keep the economy cool in the coming quarters. In the statement ... READ MORE >
American consumers continue to spend despite sticky inflation
Spending remained strong in March on the heels of robust income growth despite sticky inflation, according to Commerce Department data released on Friday. The data pointed to the underlying strength of the economy and provided a rebuttal of sorts to the disappointing gross domestic product figure ... READ MORE >
Service sector continues to normalize in March
The service sector posted slower growth in March as price growth fell to the lowest level since the start of the pandemic, according to data from the Institute for Supply Management on Wednesday. The composite index fell to 51.4 from 52.6, while the prices paid subindex dropped to 53.4 from ... READ MORE >
The Fed at an inflection point: A webinar from RSM US and U.S. Chamber of Commerce
After two years of tightening monetary policy to restore price stability, the Federal Reserve is at an inflection point as it considers interest rate cuts. With inflation easing and the labor market showing signs of softening, the Fed has signaled that it intends to cut rates three times this ... READ MORE >
February consumer price index: Sticky yet under control
The consumer price index increased at a robust rate in February for the second month in a row though this increase was not a surprise given the recent rise in gasoline prices, and, more importantly, the noise in housing inflation data. The top-line and core CPI numbers both grew at 0.4% on the ... READ MORE >
Service sector continues to grow in February
The service sector continued to grow in February for the 14th straight month, according to the Institute for Supply Management on Tuesday. While the overall service index pointed to a slightly slower February, falling to 52.6 from 53.4, the subindexes for business activity and new orders registered ... READ MORE >
Softer economic data reaffirms prospect of a soft landing
The Federal Reserve's restrictive monetary stance showed that it continues to affect the economy in the first two months of the year. In other words, the Fed is getting closer to its goal of achieving a soft landing when the economy cools back down to a sustainable level of growth with inflation under ... READ MORE >
Geopolitical tensions and risks to the inflation outlook
Just as inflation appeared to be coming under control in recent months, rising tensions in the Middle East have shaken this view and now represent the major risk to our economic and inflation outlooks. The focus of this new uncertainty centers on the energy markets, which have been roiled by ... READ MORE >
Inflation expectations remain remarkably well anchored
The inflation shock of the past three years is abating. One reason is that expectations of inflation continue to remain remarkably well anchored. The Federal Reserve’s five-year inflation forward breakeven rate-—a closely watched measure of pricing expectations—stands at 2.3%, which is below the ... READ MORE >