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%.
Inflation
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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.
Target shares plunge 26% amid rout of retail stocks
Target Corp. is on pace for its worst stock drop since 1987’s Black Monday crash after becoming the second big retailer in two days to trim its profit forecast. Other retailers suffered steep drops in their stock prices Wednesday.
Powell: Fed to keep hiking rates until it controls inflation
Chairman Jerome Powell on Tuesday underscored the Federal Reserve’s determination to keep raising interest rates until there is clear evidence inflation is steadily falling—a high-stakes effort that carries the risk of causing an eventual recession.
Retail sales rise 0.9% as consumers show resilience
Consumers are providing critical support to the economy even after a year of seeing prices spiral higher for gas, food, rent, and other necessities.
Bezos spars with Biden White House over inflation
The White House responded by pointing out that Jeff Bezos’ attacks emerged days after Biden met in the Oval Office with the labor leaders behind Amazon’s unionization drive, which the company has vehemently opposed.
Fewer nuggets, smaller salads as shrinkflation hits U.S. restaurant diners
Feeling a bit cheated when you look down at your plate? It’s not just a figment of your imagination—portions at some U.S. restaurants are indeed getting smaller.
Powell: ‘Soft’ economic landing might be out of Fed’s control
Federal Reserve Chair Jerome Powell, fresh off winning confirmation for a second term, acknowledged for the first time Thursday that high inflation and economic weakness overseas could thwart his efforts to avoid causing a recession.
Senate confirms Powell for second term as Federal Reserve chief
The 80-19 vote reflected broad support in Congress for the Fed’s drive to combat surging prices through a series of sharp interest rate hikes that could extend well into next year. The Fed’s goal is to slow borrowing and spending enough to ease the inflation pressures.
Biden cancels offshore oil lease sales in Gulf Coast, Alaska
The Biden administration says it is canceling three oil and gas lease sales, removing millions of acres from possible drilling as U.S. gas prices reach record highs.
Vegetable oil prices soar, far outstripping other food inflation
Extreme weather and the war in Ukraine have tightened global supplies of the four most commonly used types of vegetable oil—staple ingredients that are as ubiquitous in home kitchens as they are in restaurants and packaged foods.
U.S. inflation hit 8.3% last month, down slightly from 40-year high
Still, Wednesday’s report contained some cautionary signs that inflation may be becoming more entrenched. Excluding the volatile food and energy categories, so-called core prices jumped 0.6% from March to April—twice the 0.3% rise from February to March.
High inflation leaves food banks struggling to meet needs
Food banks across America say negative economic conditions are intensifying demand for their support at a time when their labor and distribution costs are climbing and donations are slowing.
Fed: Inflation, Ukraine biggest threats to financial system
The observations came in the Federal Reserve’s semiannual Financial Stability Report that looks at trends in trading and investing as well as broad economic issues.
Fed’s Bostic says no need to move faster than half-point hikes
Fed officials raised interest rates by a half-point last week and Chairman Jerome Powell signaled they would continue at that pace at meetings in June and July to curb inflation.
Task force to examine building rules in effort to drop state’s housing costs
The 13-member body approved by the Legislature in March is tasked with addressing Indiana’s affordable housing shortage.
U.S. added 428,000 jobs in April despite surging inflation
With many industries slowed by labor shortages, companies have been jacking up wages to try to attract job applicants and retain their existing employees. Even so, pay raises haven’t kept pace with the spike in consumer prices.
Here’s how higher Fed rates stand to affect Americans’ finances
Economists and investors foresee the fastest pace of Federal Reserve rate increases since 1989. The result could be much higher borrowing costs for households well into the future.
Fed raises key rate by half-point in bid to tame inflation
The Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark short-term interest rate by a half-percentage point Wednesday—its most aggressive move since 2000—and signaling further large rate hikes to come.
AT&T raises prices on wireless plans to address higher costs
The price hike will test whether carriers can join other industries like food and energy in passing on higher costs. The plan could backfire if disgruntled AT&T customers defect to Verizon and T-Mobile.