Tag: Inflation

From the latest dot plot released by the Federal Reserve, the mode value of funds rate implies two more hikes of a quarter percent by yearend. However, careful examination shows there are more dots below the mode than above. Taking into account the dovish tone by chairman Powell, the market does not believe this and still expects only one more ...

Workers in America and around the world are reporting significantly higher levels of financial hardship compared to last year, as a cooling economy and high inflation has left a growing number cash-strapped and planning to quit in search of better-paid jobs. Despite a softening economy and workers reporting growing levels of financial stress, the “Great Resignation” seems poised to continue, ...

Commentary The Federal Open Market Committee’s unanimous decision on Wednesday not to raise the federal funds rate, which banks charge each other for overnight loans, has champagne corks popping in some quarters, where it is hailed as evidence of the long-in-coming conquest of inflation; while others see Federal Reserve Chairman Jerome Powell turning chicken in the face of a long-term ...

Commentary Those who live in or near the nation’s capital, or routinely travel there, know that the Washington, D.C., region is home to the best airport in the country, Reagan National. It’s also home to one of the worst airports, Dulles International. Reagan is a gem for air travelers. It’s beautifully remodeled, usually easy to get through the TSA lines, ...

One culprit rarely mentioned, especially by governments, is the high rate of public spending Many Canadians are wondering why food prices are not dropping at the same rate as agricultural commodity prices. Last year, Russia’s invasion of Ukraine pushed prices to astronomical levels. One year later, the agricultural commodity landscape looks incredibly different. Prices for agricultural commodities have dropped significantly ...

Logistics companies are scrambling to meet California’s upcoming Jan. 1, 2024 mandate that all new trucks purchased for servicing ports, rail yards, and distribution centers in the state be zero-emission vehicles, with experts questioning limited access to charging stations and the viability of switching from diesel to electric fleets. Availability of electric semi-trucks is a concern, as is the price ...

Commentary Most politicians have used the “Ukraine invasion card” to justify the massive inflationary burst in 2021–23. It does not matter if inflation was already elevated prior to the war. Supply-chain disruptions, demand recovery, wage growth… Many excuses were used to justify inflation, except the only one that can make aggregate prices rise in unison, which is the creation of ...

With Memorial Day approaching, Americans will be purchasing ketchup, mustard, and other condiments en masse—and inflation will play a role. A 32-ounce bottle of ketchup went from an average of $4.08 for the week of May 16, 2022, to $5.22 for the week of May 15, 2023, according to data that was compiled by Datasembly, which measures grocery price changes in stores ...

SYDNEY, Australia—Assistant Minister to the Prime Minister, Patrick Gorman, said it was “disappointing” that the individual who leaked an exchange between Labor MPs and the Reserve Bank of Australia (RBA) Governor Philip Lowe, saying that they were trying to damage the government. “There’s plenty of ways to have a fight in Parliament. But breaching the confidentiality of a government committee ...

Commentary Ben Bernanke, former head of the Federal Reserve from 2006 to 2014, has co-authored a paper with Olivier Blanchard of the Peterson Institute for International Economics, that seeks to account for inflation rates that have knocked at least 15 cents off the value of the 2020 dollar. Reading the paper for me was a trip back in time when ...

The UK inflation rate has dropped for the first time in eight months, but prices on basic essentials remain high. The latest data from the Office of National Statistics (ONS) showed a drop in the Consumer Prices Index (CPI) 12-month inflation rate in April to 10.5 percent, which is lower than November’s 10.7 percent, and down from the peak in ...

Recent surveys have indicated a growing concern among U.S. citizens about the financial impact of inflation. According to a recent poll, 61 percent of Americans are now stating that the rising costs have been causing financial difficulties, a notable jump of six percent from the previous survey carried out in November 2022. This figure is the highest reported since Gallup ...

A key aide to President Joe Biden said Sunday that American business leaders’ chief concern is not inflation or recession but the looming threat of a “catastrophic” government debt default. Lael Brainard, director of the White House National Economic Council, told CBS’ “Face the Nation” on Sunday that the country’s top business leaders have told her that their biggest concern is ...

WASHINGTON—Wholesale prices in the United States rose modestly last month, the latest sign that inflationary pressures may be easing more than a year after the Federal Reserve unleashed an aggressive campaign of steadily higher interest rates. From March to April, the government’s producer price index rose just 0.2 percent after falling 0.4 percent from February to March, held down by ...

Many Americans say they are suffering sharply from higher levels of financial anxiety as the economy takes a downturn. Money is now the prime cause of stress for most Americans, according to May 8 survey by Bankrate. At least 52 percent of respondents reported that personal finances have had a negative impact on their mental health, a significant increase from 42 ...

All eyes this week will be on the April inflation report. Will it continue its downward trend, or will the consumer price index (CPI) continue to be stubborn and sticky? The Federal Reserve Bank of Cleveland’s Inflation Nowcasting is penciling in an annual inflation rate of 5.2 percent, which would be up from 5 percent in March. The core inflation ...

Commentary As an investor, it’s very easy to look at the current environment and shake one’s head. There’s a tremendous amount of headwinds. Given the volumes of headlines involving inflation, the debt ceiling, incompetence in Washington, geopolitical risks, China, etc., some investors may just give up and stash away their cash. But that could prove to be rather short-sighted. If ...