The American labor market remains red hot as the employment-to-population ratio among prime-age workers surged to 80.0% in March, up from 79.5% in February. … READ MORE >
interest rates
Chart of the day: Initial jobless claims remain low
New claims for jobless benefits increased by 14,000 last week to 202,000, continuing to stay below the pre-pandemic level in 2019. The increase was likely temporary as the labor market remained tight. … READ MORE >
The housing market will endure interest rate hikes
While low interest rates have contributed to the increased demand for housing, the factors driving the market go beyond low rates and include a thriving economy, favorable demographics and a limited supply. … READ MORE >
Durable goods orders decline amid rate hikes and geopolitical uncertainties
Durable goods orders declined for the first time in five months in February because of geopolitical uncertainties and the anticipation of the Federal Reserve’s first interest rate hike since 2018. … READ MORE >
Chart of the day: New home sales drop amid rising rates
New home sales posted the second consecutive month of decline in February as elevated prices and rising mortgage rates deterred buyers. … READ MORE >
Real estate to remain strong in face of interest rate bump
The Federal Reserve on Wednesday boosted interest rates by a quarter percentage point, leaving many landlords and real estate fund managers to wonder how the increase will affect their operations and bottom line. Fortunately, no one needs to ring the alarm. With the cost of capital remaining low, continued interest in real estate from both domestic and foreign investors, and robust demand for sectors such as housing and industrial, real estate should continue to see positive trends despite the near-term interest rate hike. … READ MORE >
FOMC’s policy decision: Rate hike, balance sheet reduction, revise down forecast, repeat
Policy normalization at the Federal Reserve took a giant step forward on Wednesday as the Federal Open Market Committee hiked the federal funds rate by 25 basis points while slashing its growth forecast and increasing its estimate of inflation. … READ MORE >
Preview of coming attractions: Inflation surges to 7.9%
The February consumer price index provided an unpleasant preview of coming attractions in the U.S. economy as top-line inflation soared by 0.8% on the month, pushing the year-ago reading to 7.9%, the fastest rate in 40 years. … READ MORE >
As global tensions rise, RSM US Financial Conditions Index deteriorates
Our composite RSM U.S. Financial Conditions Index is falling, reaching nearly one standard deviation below zero as the situation in Ukraine continues to threaten trade and global financial stability. … READ MORE >
Bank of Canada raises rates in response to inflation
The Bank of Canada announced on Wednesday that it would raise its overnight rate to 0.5%, 25 basis points from the lower bound policy rate of 0.25%, to tackle inflation. … READ MORE >