Members phkrause Posted August 16 Author Members Share Posted August 16 War on inflation has been won Illustration: Shoshana Gordon/Axios Inflation has fallen below 3% for the first time since 2021 — a clear sign that it's no longer the economy's biggest problem, Axios Macro co-author Courtenay Brown reports. The recent string of upbeat inflation data is all but certain to allow the Fed to more comfortably shift its attention to the weakening labor market and lower interest rates. 💸 By the numbers: The Consumer Price Index rose 2.9% in the 12 months ending in July. Core CPI, which excludes food and energy prices, rose 3.2% — the smallest increase in three years. And over the last three months, core CPI rose 1.6% on an annualized basis. 🛒 Zoom in: Prices for many key items increased slowly or even fell. Grocery costs have been rising at a mild pace since February, including a 0.1% increase in July. Prices are up just 1% compared to the same time last year. 🏦 What to watch: The question now is how big of a rate cut the Fed will make next month. Analysts are generally expecting a quarter of a percentage point. Go deeper. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 16 Author Members Share Posted August 16 🚘 America's car price cooldown Data: Kelley Blue Book. Chart: Axios Visuals After years of soaring prices, the cost of a new car is falling, Axios' Nathan Bomey writes from data out this week. New-vehicle prices have declined on a year-over-year basis for 10 straight months, according to Kelley Blue Book. Why it matters: It's not time to celebrate yet. Prices for vehicles and insurance are still eye-popping compared to pre-pandemic days. But pandemic-era supply chain bottlenecks — which led to price spikes — have cleared up. Dealerships are now turning to discounts to keep sales flowing. Incentives such as cash rebates and loan rate reductions — which practically disappeared during the pandemic — are back. 🔢 By the numbers: The price of a new vehicle fell 1% in July, compared to last year, according to CPI data out yesterday. Used car prices continue to slide, as well. Keep reading. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 16 Author Members Share Posted August 16 Economy Former President Donald Trump attacked Vice President Kamala Harris on Wednesday while delivering a speech in North Carolina, arguing that she would ensure the economy would get worse. He suggested that Harris' economic proposal would be a "copy of my plan," pointing to her also backing the elimination of taxes on tips for service workers — a policy proposal he announced back in June. He also accused Harris of not tackling inflation and bringing down prices while serving in the Biden administration. Harris is set to roll out her economic proposals on Friday, where she will call for a federal ban on price gouging to lower grocery prices and everyday costs for Americans. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
bonnie1962 Posted August 16 Share Posted August 16 Wonder if the author of articles like this does the family grocery shopping or paid electrical or gas bill. Not to fear tho another big chunk of taxpayers money may well be on the way for first time home buyers. Read this morning that she wants 25,000 to first time home buyers to purchase home Quote Link to comment Share on other sites More sharing options...
Members phkrause Posted August 17 Author Members Share Posted August 17 📈 Wall Street rallies Data: Yahoo Finance. Chart: Axios Visuals Less than two weeks ago, recession fears helped trigger a global stock market selloff. Yesterday, Wall Street rallied to one of its best days of the year after data showed the economy is holding up better than expected. 🧮 By the numbers: The S&P 500 is back to within 2.2% of its all-time high set last month. Go deeper. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 17 Author Members Share Posted August 17 The on-again, off-again recession Illustration: Shoshana Gordon/Axios Economists have been on a roller coaster in recent years: A recession looks likely … a recession looks unlikely … the recession is back on … the recession is back off … the recession is imminent ... the recession is far off. Why it matters: As of this moment, the recession is off again. But the constant cycle of conflicting data and changing predictions has made it hard to trust that any forecast will stick, Axios' Courtenay Brown and Sam Baker write. ↕️ Conflicting economic data is fueling these sharp swings in sentiment. 👎 The bad news: Consumers are falling further behind on credit card payments, and the unemployment rate rose to 4.3% in July — which tripped a reliable indicator that suggested high risk of a recession. 👍 The good news: Consumer spending surged in July, inflation looks like it's over (really this time), and an early forecast from the Atlanta Fed shows the economy likely grew at a solid 2% rate in the third quarter. 🧠 Reality check: Bumpy, conflicting economic data can signal a turning point in the economy. That looks to be exactly what's underway now. Go deeper. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 20 Author Members Share Posted August 20 Powell may use Jackson Hole speech to hint at how fast and how far the Fed could cut rates WASHINGTON (AP) — Federal Reserve officials have said they’re increasingly confident that they’ve nearly tamed inflation. Now, it’s the health of the job market that’s starting to draw their concern. https://apnews.com/article/interest-rates-prices-inflation-federal-reserve-economy-7e581f4da9c0c228c997ea8eb361e7ca? Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 20 Author Members Share Posted August 20 Sizable savings Most Americans know very little about the Inflation Reduction Act, but it has saved them millions of dollars on home upgrades such as solar panels, new appliances and insulation. People in California, Texas and Florida are reaping the biggest benefits. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 24 Author Members Share Posted August 24 Fed chair Jerome Powell: ‘Time has come’ to cut interest rates JACKSON HOLE, Wyoming — With inflation nearly defeated and the job market cooling, the Federal Reserve is prepared to start cutting its key interest rate from its current 23-year high, Chair Jerome Powell said Friday. https://www.orlandosentinel.com/2024/08/23/powell-at-jackson-hole-the-time-has-come-for-the-fed-to-soon-begin-reducing-interest-rates-2/? Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 24 Author Members Share Posted August 24 Get ready for rate cuts Photo illustration: Sarah Grillo/Axios. Photo: Win McNamee/Getty Images JACKSON HOLE, Wyo. — The Fed is poised to cut interest rates, in part to prevent any further job market cooling, Axios' Neil Irwin and Courtenay Brown report. In a much-anticipated speech in the Grand Tetons, Fed Chair Jay Powell said the central bank's fight to reduce inflation has largely succeeded — and he's now focused on the risks of a faltering job market. "The time has come for policy to adjust," Powell said. "[W]e do not seek or welcome further cooling in labor market conditions." 🍂 What's next: Powell's speech sets up a rate cut in mid-September, in the thick of the presidential race. Go deeper. How to prepare for the Fed’s forthcoming interest rate cuts NEW YORK (AP) — The Federal Reserve is poised to cut its benchmark interest rate next month from its 23-year high, with consequences for consumers when it comes to debt, savings, auto loans and mortgages. Right now, most experts envision three quarter-point Fed cuts — in September, November and December — though even steeper rate cuts are possible. https://apnews.com/article/fed-rate-cut-consumers-debt-loans-savings-51960beab765fcdadd61282671b075c6? Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 29 Author Members Share Posted August 29 Why the White House has a "vibe-rarian" By Courtenay Brown Illustration: Aïda Amer/Axios A central economic fact of the Biden years has been that Americans' attitudes about the economy have been highly negative despite economic data that has been good, and sometimes great. The big picture: Economists are increasingly taking public opinion seriously, relying on a skill not often taught in the halls of academia where they earned their PhDs: empathy. That means understanding the sense of misery facing sticker-shocked consumers as an important input, even if the data show the rate of inflation has declined precipitously from 2022 highs. The intrigue: This disconnect has posed a communications challenge for White House economists. Officials couldn't brag about inflation's plunge from record levels without acknowledging that average Americans feel pinched by high prices. Along with the usual reams of economic data, Council of Economic Advisors chair Jared Bernstein consults a Gen Z staffer, dubbed in-house as the "vibe-rarian." This staffer, Molly Opinsky, at times updates Bernstein on the economic vibes observed on social media platforms. One example: Groceries started showing up in TikTok videos of shopping "hauls" — when influencers post videos about their purchases — along with complaints about the high prices. What they're saying: The feeling among Biden's top economists is that such posts aren't the definitive economic narrative, but shouldn't be totally discounted. "People are the best arbiters of how they're feeling about the economy," Bernstein tells Axios. Keep reading Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted August 30 Author Members Share Posted August 30 💰 Record number of 401(k) millionaires Data: Fidelity; Chart: Axios Visuals The number of Americans with at least $1 million in their retirement accounts hit a record high during the last quarter, according to new data from Fidelity. The rising stock market drove a 2.5% increase in "401(k)-created millionaires" at Fidelity and a 6% jump in the number of people with a $1 million balance in an IRA. 💭 Our thought bubble: Tax breaks for retirement savings disproportionately benefit the wealthy, Axios' Felix Salmon writes. Accumulating $1 million in a 401(k) is only an option for people who work somewhere that offers one, probably with a generous match, and who can afford to save the legal maximum every year. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted Wednesday at 11:37 PM Author Members Share Posted Wednesday at 11:37 PM Job security In this uncertain labor market, a surprising trend is paying off — and you don’t need a bachelor’s degree. The earning potential for people with a vocational or associate degree has been consistently strong, and enrollment is on the rise. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted Thursday at 05:38 PM Author Members Share Posted Thursday at 05:38 PM Economy Wall Street kicked off September with a bust after a disappointing economic report dragged down the Dow by more than 600 points Tuesday. The report on manufacturing showed a fifth-straight month of declines, fueling concern that aggressive rate hikes from the Federal Reserve have inflicted too much damage on the economy. September has historically been an ugly month for stocks, but Tuesday's decline came after a similarly miserable start to August when markets went into a tailspin. Meanwhile, Vice President Kamala Harris is set to announce a second wave of economic proposals today, including benefits to entrepreneurs and small business owners. Small businesses are currently granted a $5,000 deduction for expenses related to their first year of operation, but Harris will propose raising that to $50,000, an official said. Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted 22 hours ago Author Members Share Posted 22 hours ago Sluggish US jobs report clears the way for Federal Reserve to cut interest rates WASHINGTON (AP) — Hiring by America’s employers picked up a bit in August from July’s tepid pace, and the unemployment rate dipped for the first time since March in a sign that the job market may be cooling but remains sturdy. https://apnews.com/article/jobs-hiring-federal-reserve-inflation-unemployment-economy-bac1b453d3873d5f23f2061344d28fd9? The job market lost momentum this summer, and rate cuts are imminent The great American job creation machine began creaking more slowly this summer, and a response from the Federal Reserve is near — though the scale of that response remains in question. https://www.axios.com/2024/09/06/us-job-market-fed-rate-cuts? Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
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