The Fed promises more rate hikes despite easing inflationary woes
Cozied up in Jackson Hole, Wyoming this week, Federal Reserve chair Jerome Powell shared a message with others at its Annual Economic Symposium: interest rates will continue to rise. This plan hasn’t changed as a summer of sky-high inflation has tortured Americans with prices of gasoline and food costing them more than ever. However, it seems that the rising inflation may have tapered off.
The suggestion that inflation may be easing comes from the reduction in the Labor Department’s consumer price index from last month. The prices of food and gasoline rose 4.6% in July from the previous year as opposed to the 4.8% growth in June.
On Friday, Federal Reserve officials breathed a sigh of relief as April’s job data revealed a cooling in wage growth and hiring rates that hark back to pre-COVID-19 days.
Federal Reserve Chair Jerome H. Powell has indicated that the central bank may not raise interest rates further if the economy and inflation continue to cool as expected.
The Federal Reserve is expected to raise interest rates by a quarter-percentage point, resuming its efforts to combat inflation after a brief pause in June.
Inflation in the United States has reached its lowest point since early 2021, providing some relief to households after two years of high prices.
The minutes from the Federal Reserve's June meeting indicate that a mild recession is expected, accompanied by further interest rate hikes to combat inflation.
The Federal Reserve announced a pause in its rate-hiking campaign, acknowledging the need to wait for the effects to permeate the economy but indicating that more rate hikes are likely this year.
A key measure of US prices, closely monitored by the Federal Reserve, showed an increase in April, indicating persistent inflationary pressures in the economy.
What does this mean for you?
The job market has been cooling off and inflation seems to be on the decline, signaling that the Federal Reserve may be less inclined to raise interest rates again and again, mirroring the increases of 2022.
In a 2022 shopping survey conducted by Supply Chain Brain of 3,138 U.S. adults, 50% said that they did not begin holiday shopping until November.
While this is the second week in a row with a very incremental change, many say it’s still better than going up.
According to the U.S. Labor Department, the employment cost index grew by 1.2% from July through September.
UPS Ground, Air, and International services will launch the rate hike beginning on December 27th.
While predictions are that the recession will be “mild”, Former US Treasury Secretary Larry Summers is echoing what many have been stating: a recession is coming, and the public should be prepared.
Used cars are officially unaffordable for most Americans. Interest rate bumps have forced a number of potential car shoppers to reconsider buying, even what has previously been the most ‘reasonable’ option.
Unemployment remains at a 50-year low, but the signs of an impending recession are growing clearer by the day.
They might be right. FedEx’s sales forecast was full of cost-cutting measures after Q1 profits showed poor performance.
‘Shrinkflation’ is a fun little term to describe what we suspected was true… yes, that container of ice cream did get smaller.
The price of meat has gone through the roof, and Walmart is hoping to ease that inflationary pain of its customers.
Cozied up in Jackson Hole, Wyoming this week, Federal Reserve chair Jerome Powell shared a message with others at its Annual Economic Symposium: interest rates will continue to rise.
The Federal Reserve Bank of New York has compiled a data analysis that has placed much of the inflation blame squarely on the supply chain.
Americans have been struggling with rising gas prices since early this year, but finally, they’ve seen the smallest bit of relief.
For the week of August 8th, the Department of Energy’s Energy Information Administration (EIA) recorded a national diesel average cost per gallon of $4.993.
While the 2,702-page, trillion-dollar infrastructure bill is quite the feat for the Biden Administration, it seems that it is one of the main catalysts in the highest inflation rate America has seen in 40 years.
Fears of a recession continue to grow as the US economy shrinks for the 2nd quarter of the year, contracting at a 0.9% annual pace.
Don’t leave the lights on when you leave the room - rising energy costs are causing warehouse managers to reevaluate focus on operational tools such as forklifts and batteries, hoping to reduce expenses.
The strong economy benefits from raising wages and consumers continuing to spend. In a way, this inflationary period is testing the limits.
The Federal Reserve Bank of New York is enhancing its supply chain data tracking with new "Supply Availability Indexes."