Inflation, looming trade war take toll as confidence of U.S. consumer tumbles
U.S. consumer confidence plummeted in February, the biggest monthly decline in more than four years, a business research group said Tuesday.
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
Weight-loss drugs aren’t just slimming waists. They’re shifting the economy.
Roughly 16 million people—that’s 6 percent of American adults—are taking GLP-1 weight-loss drugs, and that number is growing rapidly. Their collective purchasing power has the potential to profoundly reshape the economy.
Americans are down on the economy, but CEOs are full of optimism
Consumers are jittery, in part because of fears that new tariffs could worsen inflation. Executives, however, are hopeful about fewer regulations and are planning to boost investments.
Slightly more Americans apply for unemployment benefits last week, but layoffs remain relatively low
Some analysts say they expect layoffs ordered by the Department of Government Efficiency to show up in the report in the coming weeks.
U.S. Senate confirms financier Howard Lutnick as commerce secretary
At his confirmation hearing last month, Lutnick dismissed as “nonsense” the idea that tariffs contribute to inflation.
December wholesale prices rise more than expected
Year-over-year consumer price inflation has now risen for four straight months.
Inflation rose in January as prices for groceries, housing picked up
Wednesday’s data could strengthen the case for the Federal Reserve to remain in an extended pause mode while the economy is strong and inflation remains elevated.
U.S. employers add 143,000 jobs, jobless rate falls to 4%
Most Americans still enjoy unusual job security. But for those looking for work, the job hunt has been getting harder compared with the red-hot hiring days of 2021-2023.
U.S. manufacturing activity expands for first time since 2022
The surveys were conducted before President Donald Trump announced tariffs on imports that risk disrupting supply chains for American producers.
U.S. economy grew solid 2.3% during 4th quarter
Consumer spending grew at a 4.2% pace, fastest since January-March 2023. But business investment tumbled.
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.
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.