U.S. consumer sentiment slumps to record low on inflation woes
As high prices leave less income for discretionary purchases, the risk to the economy is a more pronounced slowdown in consumer spending.
Economy
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U.S. inflation rises again, hitting 40-year high of 8.6%
Some evidence in recent weeks had suggested that inflation might be moderating, particularly for long-lasting goods that were caught up in supply chain snarls and shortages last year. But that trend appeared to reverse itself in May.
Weekly applications for U.S. jobless benefits rise by 27,000
More Americans applied for jobless aid last week, but the total number of Americans collecting unemployment remains at a five-decade low.
Empty wallets, empty tanks: Surging gas prices leave more drivers stranded
The incessant run-up in prices has motorists testing the limits of their fuel gauges: AAA fielded 50,787 out-of-gas calls in April, a 32% jump from the same month last year.
Worry about stagflation, a flashback to 1970s, begins to grow
Stagflation is the bitterest of pills: High inflation mixes with a weak job market to cause a toxic brew that punishes consumers and befuddles economists.
Treasury Secretary Yellen expects inflation to ‘remain high’
The Federal Reserve and Treasury Department have been increasingly blamed by legislators and the public for allowing inflation to reach record highs—notably an 8.3% leap in consumer prices over the past year.
Inflation divide: Wealthy splurge, while poorest pull back
While wealthier shoppers continue to splurge, low-income shoppers have pulled back faster than expected in the past two months. They’re focusing on necessities while turning to cheaper items or less expensive stores. And they’re buying only a little at a time.
U.S. added 390,000 jobs in May as hiring remained robust
The job growth in May was high enough to keep the Federal Reserve on track to pursue what’s likely to be the fastest series of rate hikes in more than 30 years.
Hiring might have slipped last month to a still-strong level
The May jobs report the government will issue Friday coincides with inflation near a four-decade high and worries about higher borrowing rates and a potential recession roiling the stock market.
U.S. job openings decline from record level but remain high
The historically high number of unfilled jobs and the number of people quitting has forced employers to pay more to attract and keep staff. Those trends are driving solid wage gains for America’s workers, particularly those that switch jobs.
White House scrambles on inflation after Biden complains to aides
The White House launched a push Tuesday to contain the political damage caused by inflation after President Joe Biden complained for weeks to aides that his administration was not doing enough to publicly explain the fastest price increases in roughly four decades.
U.S. consumer confidence slips amid stubborn inflation
President Joe Biden will meet with Federal Reserve Chairman Jerome Powell on Tuesday as soaring inflation continues to carve up Americans’ earnings.
Analysis: U.S. policymakers misjudged inflation threat until it was too late
Prices for just about everything Americans buy have spiked in the past two years. Inflation, which had been scarcely noticeable for decades, is suddenly the top concern most people have about the economy. And it all seemed to catch Washington, D.C., by surprise.
Indiana Global Economic Summit updates: Former Google CEO: Losing to China ‘is not an option’
More than 800 business and government leaders from 30-some countries are in Indianapolis this week for the inaugural Indiana Global Economic Summit. Gov. Eric Holcomb and the Indiana Economic Development Corp. are using the event to showcase the state as a place for development and innovation. Check back here for updates.
Key inflation gauge slowed to still-high 6.3% over past year
High inflation appears to be forcing consumers, on average, to save less. The savings rate fell to 4.4% last month, the lowest level since 2008.
With Indianapolis 500 at full throttle, business is booming again
Locals don’t need studies to reinforce what they already know—this month is revving up to be the best fiscal May since the 100th running of the race in 2016.
Congressional Budget Office says inflation to last into 2023
The nonpartisan agency expects the consumer price index to rise 6.1% this year and 3.1% in 2023, above a long-term baseline of 2.3%.
Fed officials signal rates might head to ‘restrictive’ levels
Federal Reserve officials agreed when they met earlier this month that they may have to raise interest rates to levels that would weaken the economy as part of their drive to curb inflation, which is near a four-decade high.
Poll: U.S. economy bigger priority than punishing Russia
While broad support for U.S. sanctions has not faltered, the balance of opinion on prioritizing sanctions over the economy has shifted, according to the poll from The Associated Press-NORC Center for Public Affairs Research.
U.S. might be barreling toward recession in next year, more experts say
Although major swaths of the economy—including the job market and consumer spending—remain robust, there are mounting worries that rising borrowing costs for consumers and businesses, after years of near-zero interest rates, could cause a sudden retrenchment.