Nation’s largest trade group says holiday sales rose more than expected
The National Retail Federation said the 2024 holiday shopping season turned out to be robust, as easing inflation on merchandise drove shoppers to buy.
Economy
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Powell: Fed still sees rate cuts this year; election timing won’t affect decision
The recent pickup in inflation has led some economists to postpone their projections for when the Federal Reserve will begin cutting interest rates.
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Federal Reserve on cusp of what some thought impossible: Defeating inflation without steep recession
The economy keeps growing, defying widespread fears from a year ago that 2023 would bring a recession, a consequence of the much higher borrowing rates the Fed engineered.
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Food prices remain high ahead of July 4 celebrations, Hoosier farmers say
All but two of the items—cheese and pork chops—were more expensive than last year. Cookies, hamburgers buns and lemonade were up the most.
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IBJ Podcast: Pete The Planner on potential student loan tumult and its wider economic threats
Federal student loan borrowers haven’t been required to make loan payments since March 2020. But the grace period is almost over: Some 44 million borrowers will be required to either begin or continue making payments in September.
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Articles
U.S. payrolls growth picks up, unemployment rate drops
The U.S. economy in December added the most jobs since March, capping a surprisingly strong year and supporting the case for a pause in Federal Reserve interest-rate cuts.
Corporate earnings growth faces uncertainty amid inflation worries, policy shift impact
Wall Street’s 2025 forecast for more than 12% profit growth relies largely on current conditions continuing to prevail.
Unemployment claims fall to 211,000, lowest level since March
Economists called the drops “encouraging,” but cautioned that seasonal adjustments around the holidays can throw off the numbers.
Value-seekers drove 2024’s retail trends and dead ends
Shoppers and restaurant patrons in the U.S. were choosy about where and how to spend their money as they wrestled with high housing and food prices.
Holiday shoppers increased spending by 3.8% despite higher prices
This year, retailers were even more under the gun to get shoppers in to buy early and in bulk since there were five fewer days between Thanksgiving and Christmas.
U.S. economy grew at 3.1% pace in third quarter
GDP growth has now topped 2% in eight of the last nine quarters.
Retail sales rose last month in latest sign of U.S. economy’s health
Sales jumped 2.6% at auto dealers, driving most of the gain. Some of that demand likely reflected a need for new cars in parts of the southeast slammed by Hurricane Helene in October, as well as healthy incentives provided by car dealers.
Inflation ticks up as some price pressures remain persistent
Fueled by pricier used cars, hotel rooms and groceries, inflation in the United States moved slightly higher last month.
U.S. job openings rose last month, but hiring slowed
Taken as a whole, Tuesday’s figures suggest that the job market might be stabilizing at a modest level, with hiring moderate but layoffs uncommonly low.
Stellantis CEO Carlos Tavares resigns as carmaker continues to struggle with slumping sales
In recent months, Tavares had come under fire from U.S. dealers and the United Auto Workers union after the release of dismal financial performance reports.
Inflation gauge ticks higher with price pressures still stubborn
Consumer prices rose 2.3% in October from a year earlier. That’s up from 2.1% in September, although it’s still only modestly above the Fed’s 2% target.
U.S. economy grew at 2.8% pace in third quarter on strong consumer spending
Within the GDP data, a category that measures the economy’s underlying strength rose at a solid 3.2% annual rate from July through September, up from 2.7% in the April-June quarter.
Trump fills out his economic team with two veterans of his first administration
Trump on Tuesday announced he has chosen international trade attorney Jamieson Greer to be his U.S. trade representative and Kevin Hassett as director of the White House National Economic Council.
U.S. consumer confidence ticks higher on better outlook for hiring
The Conference Board doesn’t break out its responses by party, but another measure of consumer sentiment by the University of Michigan showed that optimism about the economy jumped among Republicans after the election.
Rising price of paying national debt complicates Trump’s promises on growth, inflation
Not only is the federal debt at roughly $36 trillion, but the spike in inflation after the coronavirus pandemic has pushed up the government’s borrowing costs such that debt service next year will easily exceed spending on national security.
U.S. economy should continue growing in 2025, economist says
The U.S. economy is strong and should continue to grow next year, Fifth Third Bank Chief Investment Strategist Tom Jalics said at IBJ’s 2025 Economic Forecast breakfast Thursday.
Right before the election, inflation rose to 2.6 percent annual rate
The bulk of October’s monthly increase was driven by a rise in shelter costs, which were up 0.4 percent last month and grew by 4.9 percent annually.
U.S. consumer sentiment advances to highest level since April
The upbeat picture also reflected Americans’ forecasts for slower inflation. Consumers expect prices will climb 2.6% over the next year, the lowest since 2020.
Restaurants, other services still in grip of high inflation
While prices for most goods have been falling throughout the year, inflation for food services and home and auto insurance remain stubbornly high.