Economy shows signs of cooling, with easing inflation, higher jobless claims
Applications for unemployment benefits climbed to a more than one-year high and wholesale inflation continued to moderate, adding to signs of softening in the economy.
Inflation
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U.S. prices remain high, showing inflation pressures persist
The nation’s inflation rate has steadily cooled since peaking at 9.1% last June but remains far above the Federal Reserve’s 2% target rate.
New cars, once part of American dream, now out of reach for many
The average price of a new vehicle in the United States has risen 30 percent over the past three years, according to Kelley Blue Book, pricing more Americans out of the new car market.
U.S. adds a solid 253,000 jobs despite Fed’s rate hikes
April’s hiring gain compares with 165,000 in March and 248,000 in February and is still at a level considered vigorous by historical standards.
U.S. productivity declines more than forecast, labor costs climb
Quarterly productivity figures are extremely volatile, but if the latest decline is sustained, it risks keeping inflationary pressures elevated.
Fed set to raise rates yet again. What comes next is unclear.
Another quarter-point rate increase on Wednesday would leave the Fed’s key rate at 5.1%—a 16-year high and a full 5 percentage points higher than in March 2022.
Inflation pressures remain persistent as consumers pull back
Key measures of prices and wages remained high in March, keeping the Federal Reserve on track to raise interest rates next week for the 10th time since March of last year in its drive to defeat high inflation.
Banks paying savers again after years of low rates
Banks were initially slow to raise their payouts as the Fed raised rates because they were awash in deposits. But those deposits have shrunk over the past year because inflation forced consumers and businesses to dip into their savings.
U.S. business activity unexpectedly jumps, risking more inflation
Firms saw new orders jump to the highest rate in 11 months, especially in the service sector. That allowed businesses to pass on higher costs to customers, resulting in the fastest jump in output prices in seven months.
Inflation keeps cooling as Fed begins to worry about ‘mild’ recession
Reading the inflation report, economists emphasized the need to stay cautious and not treat all sources of price hikes as equal.
Cheaper gas, food provide some relief from U.S. inflation
Despite last month’s decline, food costs are still up more than 8% in the past year. And restaurant prices, up 0.6% from February to March, have risen nearly 9% from a year ago.
Companies targeting big spenders with premium products
Companies from toothpaste makers to Chipolte are adding more premium items as they reach out to wealthier shoppers who are still spending freely even in the face of higher inflation.
Key inflation gauge tracked by Fed slowed in February
Taken as a whole, Friday’s figures show that inflation pressures, though easing gradually, still maintain a grip on the economy.
Fed’s unwanted ally in bid to tame inflation: Credit crunch
Signs of a possible credit crunch in the United States had begun to emerge even before Silicon Valley Bank collapsed on March 10, raising worries about the stability of the financial system.
U.S. wholesale inflation slows on easing food costs
A significant driver of last month’s wholesale inflation slowdown was a huge drop in the prices of eggs, which plummeted 36.1% just in February. Egg prices had previously surged after a widespread outbreak of avian flu.
Inflation eases but stays high, putting Fed in tough spot
Even though prices are rising much faster than the Fed wants, some economists expect the central bank to suspend its year-long streak of interest rate hikes when it meets next week.
U.S. adds robust 311,000 jobs despite Fed’s rate hikes
Nearly all of last month’s hiring occurred in services industries—from restaurants and hotels to retailers and health care companies.
Powell says ‘no decision’ on size of Fed’s next rate hike
Jerome Powell’s more nuanced remarks Wednesday appeared to be an effort to quell any assumption that the Fed has already decided to raise rates more aggressively based on a recent string of data that pointed to strong economic growth and still-high inflation.
Powell: Rate hikes could accelerate if economy stays strong
Most economists and Wall Street investors had expected the Fed to carry out another quarter-point increase when it next meets March 21-22. But in recent days, traders have been pricing in a greater likelihood of a half-point increase.
Fed says more rate hikes needed to curb inflation
U.S. central bankers are waging their most aggressive action against high inflation in a generation.