U.S. consumers still confident, but slightly less so
U.S. consumer confidence dampened slightly in April but remains high even as inflation continues to cloud optimism about the rest of the year.
Economy
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Why the Fed worries about strongest U.S. job market in decades
As the Federal Reserve sees it, the surge in job postings forces employers to boost wages to attract and keep workers. Those higher labor costs are then passed to customers in the form of higher prices, thereby helping fuel inflation.
Retail sales rose 0.5% in March amid soaring inflation
Soaring prices on everything, particularly at the gas pump, are now making shoppers choosier about how they spend their money.
U.S. inflation jumped 8.5% over past year, highest since 1981
Even excluding volatile food and energy prices, which have driven overall inflation, so-called core inflation jumped 6.5% over the past 12 months, the biggest such increase since 1982.
U.S. inflation might peak in March, but it’s a slow go to Fed’s 2% goal
The Fed last month kicked off what’s expected to be a series of interest rate hikes to tame inflation, but the efforts to temper demand will take time to materialize.
Inflation hitting not-for-profits’ services, ability to fundraise
Not-for-profits of all kinds are getting hurt by inflation, experts say. Price and wage increases are stressing them in multiple ways, making it harder to keep up with their own basic operational expenses while also forcing them to curtail the services they provide.
Biden administration bets strong job market will shield economy from slump
The next few months will test whether President Joe Biden built a durable recovery full of jobs with last year’s $1.9 trillion relief package, or an economy overfed by government aid that could tip into a downturn.
Fed signals more aggressive steps to fight inflation
In minutes from their policy meeting three weeks ago released Wednesday, Fed officials said that half-point interest rate hikes, rather than traditional quarter-point increase, “could be appropriate” multiple times this year.
Yellen: Russia invasion will have ‘enormous economic repercussions’
Treasury Secretary Janet Yellen made her remarks to the House Financial Services Committee. They were part of her annual testimony on the state of the international financial system.
U.S. added 431,000 jobs in March in sign of economic strength
The government’s report Friday showed that last month’s job growth helped shrink the unemployment rate to 3.6%. That’s the lowest rate since the pandemic erupted two years ago and just above the half-century low of 3.5% that was reached two years ago.
Key inflation gauge sets 40-year high as gas and food soar
Squeezed by inflation, consumers increased their spending by just 0.2% in February, down from a much larger 2.7% gain in January. Adjusted for inflation, spending actually fell 0.4% last month.
Even as inflation bites, corporate profits remain flush
Big companies have successfully raised prices for their products because their customers have kept lining up regardless. What’s uncertain is how much longer the trend may last, before customers sharply cut back on their purchases.
U.S. quarterly growth revised slightly lower, to 6.9%
Looking ahead, growth is likely to slow sharply this year, particularly in the first three months 2022. Higher inflation will likely weigh on consumer spending as Americans take a dimmer view of the economy.
Explainer: Bond yields might be warning of upcoming recession
The “yield curve” is watched for clues to how the bond market is feeling about the U.S. economy’s long-term prospects. On Tuesday, a closely followed part of the yield curve gave investors some cause for concern.
U.S. job openings, quitting at near-record high in February
There were 11.3 million available jobs last month, matching January’s figure and just below December’s record of 11.4 million, the Labor Department said Tuesday.
Biden’s budget plan calls for higher taxes on rich, lower deficits
Biden is proposing a total of $5.8 trillion in federal spending in fiscal 2023, which begins in October. The deficit would be $1.15 trillion.
U.S. weekly jobless claims at lowest level since 1969
In total, 1,350,000 Americans were collecting jobless aid the week that ended March 12, another five-decade low.
Ukraine invasion increases pressure for U.S. oil, but industry faces hurdles
Obstacles to more U.S. oil are surmountable, according to analysts, yet will take months to work through and it could be late this year or early next before a significant production increase materializes.
U.S. grew wealthier, better educated in second half of 2010s
The report released Thursday captures the second half of a decade-long expansion in the U.S. economy that followed the Great Recession.
Retail sales rose 0.3% in February amid higher prices
After beginning the year in a buying mood, Americans slowed their spending in February on gadgets, home furnishings and other discretionary items as higher prices for food, gasoline, and shelter consumed more of their wallets.