US Economy Remains Resilient Despite Interest Rate Hikes
Video Credit: Wibbitz Top Stories - Duration: 01:31s - Published
US Economy Remains Resilient Despite Interest Rate Hikes
US Economy, Remains Resilient Despite , Interest Rate Hikes.
Associated Press reports that while the job market
has cooled, it continues to defy predictions that
skyrocketing interest rates would trigger a recession.
In July, employers in the U.S. added
approximately 187,000 jobs, while the
unemployment rate dropped 3.5%.
AP reports that the number is still less
than the 200,000 new jobs economists
had expected to see added in July.
.
Since March of 2022,
the Federal Reserve has
raised interest rates 11 times.
.
This is a good strong report, Julia Pollak, Chief economist at the jobs
website ZipRecruiter, via Associated Press.
The worst fears that people had
of a painful downturn, a loss of jobs,
longer unemployment durations,
all those things — those
are not coming to pass, Julia Pollak, Chief economist at the jobs
website ZipRecruiter, via Associated Press.
Meanwhile, unemployment fell just
short of a half-century low as
152,000 workers entered the U.S. job market.
.
Regardless of the influx of new employees,
average hourly wages increased 0.4% from June
and a 4.4% increase from the same time last year.
AP reports that those
higher-than-expected numbers
are likely to worry the Fed.
In both May and June, the Labor Department
revised payroll figures down, reducing the number
of new jobs created by 49,000 each month.
.
In both May and June, the Labor Department
revised payroll figures down, reducing the number
of new jobs created by 49,000 each month.
.
Paul Ashworth, chief North America economist at
Capital Economics, June and July were “the two
weakest monthly gains in two-and-a-half years."
Stock Markets Rally , Amid Investor Hopes for , Interest Rate Cuts in 2024.
On the morning of May 15, both the S&P and the
Nasdaq hit all-time highs after new data suggested
inflation may be easing in line with expectations.
Quartz reports that the Dow Jones Industrial Average
is also inching toward the record-breaking
40,000 mark, which it almost hit in March. .
According to the latest Bureau of Labor
Statistics data, April saw the Consumer Price
Index, a key gauge of inflation, rise by 3.4%.
At the same time, consumer prices
increased by 0.3%, slowing slightly
from March's 0.4% increase.
The latest data also shows that core prices,
which don't include food and energy, saw the lowest
increase since April of 2021, rising just 3.6%. .
As a result, investors have a sense of
renewed hope that the Federal Reserve will
begin to cut interest rates at some point in 2024.
The latest inflation data was released one day
after the Producer Price Index, which
measures wholesale inflation, increased 0.5%. .
Over the past year, the
index has increased 2.2%.
Shortly after markets opened, the Dow
jumped up 147 points, hitting 39,705, while the
S&P 500 and the Nasdaq saw 0.5% increases.
Shares in GameStop were down 30% after
experiencing a boost earlier this week by
the online return of investor "Roaring Kitten."
Credit: Wibbitz Top Stories Duration: 01:30Published
Consumer Outlook , Plunges Amid Fears of , More Price Hikes Ahead.
CNN reports that sentiment about the economy among
consumers in the United States has plummeted
to the lowest level in the past six months.
According to the latest consumer survey by the
University of Michigan, consumers are also bracing
for more price increases in the year ahead. .
The consumer expectations gauge,
which is closely monitored by the White House,
dropped 13%, representing the most significant
single month decline since mid-2021.
The latest news is still better than
last May when inflation was at 4%
compared to the current 3.5% reading.
However, CNN points out that despite inflation
being lower than the same time last year, the numbers
have been moving in the wrong direction.
The trajectory has shifted
economist expectations for
the Federal Reserve to cut rates. .
The latest Fed report saw expectations
for year-ahead inflation increase
to 3.5% from the 3.2% forecast in April. .
At the same time, long-run
expectations for inflation also
increased to 3.1% from April's 3.0%. .
According to Chicago Federal Reserve
President Austan Goolsbee, the latest data , "bodes awful for progress on inflation.".
There isn’t, at this time,
much evidence in my view that
inflation is stalling out at 3%, Austan Goolsbee, Chicago Federal Reserve President, via CNN
Credit: Wibbitz Top Stories Duration: 01:31Published
Key Federal Reserve Inflation Gauge , Rose 2.8% in March.
According to Commerce Department
data released on April 26.
the personal consumption expenditures
(PCE) price index, not including food or energy, rose 2.8% year-over-year in March. .
That exceeded Dow Jones
estimates of 2.7%, CNBC reports. .
When also accounting for food and energy, the all-items PCE measure rose 2.7%,
which was above the 2.6% estimate.
Inflation reports released this morning
were not as a hot as feared, , George Mateyo, chief investment officer at Key Wealth, via CNBC.
... but investors should not get
overly anchored to the idea that
inflation has been completely
cured and the Fed will be cutting
interest rates in the near-term, George Mateyo, chief investment officer at Key Wealth, via CNBC.
The prospects of rate cuts remain,
but they are not assured, and the
Fed will likely need weakness in
the labor market before they
have the confidence to cut, George Mateyo, chief investment officer at Key Wealth, via CNBC.
Consumers continue to spend despite
higher prices, CNBC reports.
Personal spending increased 0.8% in March, while personal income rose 0.5%.
The personal saving rate dropped to 3.2% as more people are having to dip into their savings to cover the cost of living.
The Fed continues to target 2% inflation, which the core PCE has exceeded for
the last three years, CNBC reports.
Credit: Wibbitz Top Stories Duration: 01:30Published
Fears of Potential Iranian Attack , Drive US Stocks Down , Nearly 500 Points.
CNN reports that United States stocks dropped on
April 12 amid rising tensions in the Middle East pushing
traders to seek safe havens like gold and bonds.
CNN reports that United States stocks dropped on
April 12 amid rising tensions in the Middle East pushing
traders to seek safe havens like gold and bonds.
By mid-afternoon, the Dow had fallen
1.4%, the S&P 500 went down 1.6%,
and the Nasdaq dropped 1.8%.
The dip came after the White House announced
that both the U.S. and Israel are on alert for
a potential attack by Iran or its allies.
The dip came after the White House announced
that both the U.S. and Israel are on alert for
a potential attack by Iran or its allies.
The warning comes after Iran
accused Israel of a deadly airstrike
on a consulate in Damascus, Syria. .
The news also sent oil prices up amid
fears of regional tensions escalating
as a result of the ongoing war in Gaza. .
The news also sent oil prices up amid
fears of regional tensions escalating
as a result of the ongoing war in Gaza. .
Brent crude futures jumped up to $90.42
a barrel, and West Texas Intermediate crude
futures increased to $86.65 a barrel.
Those geopolitical concerns and subsequent
rising oil prices sent investors to safe havens like
gold futures, which rose to $2,379 a troy ounce.
Those geopolitical concerns and subsequent
rising oil prices sent investors to safe havens like
gold futures, which rose to $2,379 a troy ounce.
CNN reports that Americans' opinions of
the economy have dipped in the past few
months amid persistently high inflation.
The geopolitical fears come as investors are already
contending with concerns that the Federal Reserve could
wait to bring interest rates down from a 23-year high.
Officials at the Fed have signaled that further rate
hikes could still be on the way if the central
bank's efforts to fight inflation stall.
Credit: Wibbitz Top Stories Duration: 01:31Published
Federal Reserve Posts Massive, $114 Billion , Loss in 2023.
On March 26, the Federal Reserve
announced a record-breaking net
negative income of $114.3 billion in 2023.
Reuters reports that the loss follows
$58.8 billion in net income in 2022. .
Since releasing the numbers,
the Fed has stressed that negative net
income does not impede its ability to operate.
Since releasing the numbers,
the Fed has stressed that negative net
income does not impede its ability to operate.
As a result of low rates and large
levels of bond holdings, the Fed has
earned significant profits in recent years.
Last year, the Fed's audited interest expenses for
banks' reserve balances reached $176.8 billion,
an increase of over $116 billion from 2022.
In 2023, the Fed's interest payouts from
its reverse repo facility were $104.33 billion,
increased from $41.9 billion the year before.
Reuters reports that the Fed creates funds when
dealing with operating losses, capturing its loss
in an accounting device known as a deferred asset.
Reuters reports that the Fed creates funds when
dealing with operating losses, capturing its loss
in an accounting device known as a deferred asset.
At the close of 2023, the deferred
asset stood at $133.3 billion.
As of March 20 of this year, that number
had risen to $157.8 billion with no
indication of how much larger it could get.
Last year, a St. Louis Fed report forecast that it
could take years before the Fed can return to
profitability and reduce the country's deferred asset.
Last year, a St. Louis Fed report forecast that it
could take years before the Fed can return to
profitability and reduce the country's deferred asset
Credit: Wibbitz Top Stories Duration: 01:30Published
Study Reveals First Case , of an American Dolphin , Diagnosed With Bird Flu.
'Newsweek' reports that a new study has found
that a Florida dolphin was discovered with
a "highly pathogenic" form of bird flu.
'Newsweek' reports that a new study has found
that a Florida dolphin was discovered with
a "highly pathogenic" form of bird flu.
The case is the first cetacean ever recorded
in North America with highly pathogenic
avian influenza virus (HPAIV).
The case is the first cetacean ever recorded
in North America with highly pathogenic
avian influenza virus (HPAIV).
The study warns that a highly contagious
bird flu "could be catastrophic"
for cetacean species.
In March of 2022, a dolphin was found
"in distress" in a Dixie County canal and died
shortly after the arrival of a rescue team. .
A postmortem revealed that the dolphin suffered
from a number of health problems, including
leptomeninges disease and brain inflammation.
We still don't know where
the dolphin got the virus and
more research needs to be done, Richard Webby, Director of the World Health
Organization Collaborating Center for Studies
on the Ecology of Influenza in Animals and Birds at
St. Jude Children's Research Hospital, via 'Newsweek'.
After first being detected in North America
in 2021, the virus has been spreading
among birds and other mammals.
After first being detected in North America
in 2021, the virus has been spreading
among birds and other mammals.
According to researchers, harbor seals and grey seals
in the area had died from the same virus. A small
amount were also found to have neurological symptoms.
So far, seals and sea lions have
been the primary mammal species
to be impacted by the disease. .
'Newsweek' reports that the recent study highlights the
importance of learning more about the virus in order to
potentially prevent it from spreading to further species.
'Newsweek' reports that the recent study highlights the
importance of learning more about the virus in order to
potentially prevent it from spreading to further species
Credit: Wibbitz Top Stories Duration: 01:31Published
Missy Elliott Announces , First-Ever Headlining Tour.
The legendary rapper's first headlining tour was announced on April 8, 'People' reports.
"Out of This World — The Missy Elliott Experience" will visit 24 cities in North America.
Supporting acts include
Ciara, Busta Rhymes and Timbaland. .
Supporting acts include
Ciara, Busta Rhymes and Timbaland. .
Supporting acts include
Ciara, Busta Rhymes and Timbaland. .
This is an incredible time in
my life as I am experiencing
so many milestone ‘firsts.’ , Missy Elliott, via statement.
Being the FIRST female Hip Hop
artist to be inducted into the
Rock & Roll Hall of Fame and now
going out on my FIRST headline tour, Missy Elliott, via statement.
Fans have been asking me to tour
forever, but I wanted to wait until I felt
the time was right because I knew if I
was ever going to do it, I had to do it
big, and I had to do it with family!, Missy Elliott, via statement.
So get ready to be taken OUT OF THIS
WORLD with me, Busta Rhymes, Ciara,
and Timbaland! We can’t wait to share
this experience with the fans!, Missy Elliott, via statement.
The tour is set to kick off at
Rogers Arena in Vancouver on July 4.
It will end August 22 at
Allstate Arena in Rosemont, IL.
A Verizon presale will take place April 9 at
10 a.m. through April 11 at 10 p.m. local time.
Other tickets will be available
beginning April 12 at 10 a.m. local time.
Credit: Wibbitz Top Stories Duration: 01:31Published
March Retail Sales , Exceeded Expectations.
New Commerce Department data surprised
some analysts on April 15, 'The Hill' reports. .
The agency's latest estimates indicate
that March retail sales increased by 0.7%.
They were only expected
to rise 0.3% last month.
While sales exceeded estimates for March, the jump
was still below the 0.9% increase in February.
Compared to the same time last year, total sales
for the first three months of 2024 were up 2.1%.
On April 10, the Labor Department released data showing that inflation rose last month. .
The consumer price index (CPI)
increased 0.4% in March and 3.5% annually.
In February, consumer prices
increased 3.2% year-over-year. .
Still, the newest Commerce Department data suggests that Americans continue to spend despite prolonged inflation, 'The Hill' reports.
Credit: Wibbitz Top Stories Duration: 01:30Published
Data Shows , US Wages Falling , at a 'Striking' Pace.
Fox News reports that wage growth
in the United States has slowed
significantly over the past year. .
According to new data from Indeed,
wage growth is beginning
to near pre-pandemic levels. .
Indeed's wage tracker showed that salaries have had
a marked drop since January 2022, suggesting that
employers are seeing less competition for new hires.
The pace of deceleration
is striking. Posted wage growth
has fallen by almost 3 percentage
points over the past year, Nick Bunker, Indeed labor economist, via Fox News.
Fox News reports that the most pronounced
deceleration was found in low-wage sectors. .
Given the huge run-up in posted
wages for those sectors, wage growth
is still above its pre-pandemic pace.
How long this will last is uncertain, Nick Bunker, Indeed labor economist, via Fox News.
After remaining historically tight throughout the last
year, the labor market is expected to continue slowing
in the coming months amid elevated interest rates.
Since March of 2022, the Federal Reserve has increased interest rates 11 times in an attempt to slow down inflation and cool the labor market.
Since March of 2022, the Federal Reserve has increased interest rates 11 times in an attempt to slow down inflation and cool the labor market.
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
In 2024, there have already been a number of significant layoffs, with major companies like Alphabet, Amazon and Citigroup cutting jobs. .
Despite this, job growth has
remained resilient, with employers
adding 275,000 jobs in February. .
At the same time, Labor Department
data shows that the unemployment
rate for the month also rose to 3.9%.
Credit: Wibbitz Top Stories Duration: 01:31Published
Kevin Mahn, Hennion & Walsh Asset Management president and CIO, joins 'Power Lunch' to discuss how interest rate hikes are impacting credit lending, the market response to..
Today, The Two Mikes spoke with Gordon Oliver from Cambridge Credit Counseling for an update on America’s economic situation. Mr. Oliver explained that the economy continues to struggle..