Inflation and Interest Rate Hikes Cornering Many U.S. Households
Video Credit: Wibbitz Top Stories - Duration: 01:31s - Published
Inflation and Interest Rate Hikes Cornering Many U.S. Households
Inflation and Interest Rate Hikes , Cornering Many U.S. Households.
On May 9, inflation data is expected
to strike a familiar note with people
living in the United States.
.
NBC reports the data is expected to show that people in
the U.S. are feeling cornered by the increased cost
of goods and services amid the current economy.
According to the Labor Department,
March saw an annual increase in prices of 5%.
.
NBC reports that Wall Street analysts
expect another 5% increase in April.
We’re in a robust
demand environment, Neil Dutta, Head of economic research
at Renaissance Macro Research group, via NBC.
And one reason for that is that
labor markets are very tight, Neil Dutta, Head of economic research
at Renaissance Macro Research group, via NBC.
NBC reports that recent job data shows that
the U.S. unemployment rate has dropped
back to a post-pandemic low of 3.4%.
Meanwhile, 10 straight interest rate hikes by
the Federal Reserve has brought key federal
funding rates to the highest level in over 15 years.
.
Last week, while speaking at the central bank's
summer meeting, Fed Chair Jerome Powell
failed to rule out continued rate hikes in 2023.
Last week, while speaking at the central bank's
summer meeting, Fed Chair Jerome Powell
failed to rule out continued rate hikes in 2023.
Between the spikes in gasoline,
food and shelter prices, there has
been no shortage of sources of
aggravation associated with
inflation for many months now, Neil Dutta, Head of economic research
at Renaissance Macro Research group, via NBC.
Between the spikes in gasoline,
food and shelter prices, there has
been no shortage of sources of
aggravation associated with
inflation for many months now, Neil Dutta, Head of economic research
at Renaissance Macro Research group, via NBC
Consumer Prices , Rose 0.4% in February.
The Bureau of Labor Statistics released
its latest data on March 12.
In February 2024, prices rose 0.4%
compared to January and 3.2% year-over-year, according to the Consumer Price Index (CPI).
The figures, which are greater than expected, represent the biggest monthly increase since September, Yahoo Finance reports. .
The index for housing rent rose 0.5% in February.
Gas prices rose 3.8%.
While food prices held steady for the month, they increased 2.2% year-over-year.
The Federal Reserve will use the latest data to help determine its position on interest rates on March 20. .
Experts predict that rates will
remain unchanged for the time being.
The market is now eyeing June for the possibility of rate cuts, Yahoo Finance reports. .
Fed Chair Jerome Powell recently said
that while interest rates will likely
be cut "at some point this year,"
"a little bit more data" is needed.
Credit: Wibbitz Top Stories Duration: 01:31Published
Powell Says , Fed Remains Reluctant to Start , Lowering Interest Rates.
On March 6, Federal Reserve Chair Jerome Powell
said that interest rates will start to drop at
some point this year, without specifying when.
CNBC reports that Powell said policymakers
are closely monitoring the risks of inflation and
are reluctant to begin easing rates too quickly.
In considering any adjustments
to the target range for the policy
rate, we will carefully assess
the incoming data, the evolving
outlook, and the balance of risks. , Jerome Powell, Federal Reserve Chair, via CNBC.
The Committee does not
expect that it will be appropriate
to reduce the target range until
it has gained greater confidence
that inflation is moving
sustainably toward 2 percent, Jerome Powell, Federal Reserve Chair, via CNBC.
According to Powell, the Fed needs
"a little bit more data" before
making a decision on rates.
We think because of the strength
in the economy and the strength
in the labor market and
the progress we’ve made,
we can approach that step
carefully and thoughtfully
and with greater confidence, Jerome Powell, Federal Reserve Chair, via CNBC.
When we reach that confidence,
the expectation is we will
do so sometime this year.
We can then begin dialing back
that restriction on our policy, Jerome Powell, Federal Reserve Chair, via CNBC.
Markets are eagerly anticipating the Fed ending its
aggressive rate-hiking campaign, after 11 interest
rate increases between March 2022 and July 2023.
Longer-term inflation expectations
appear to have remained well
anchored, as reflected by
a broad range of surveys of
households, businesses, and
forecasters, as well as measures
from financial markets, Jerome Powell, Federal Reserve Chair, via CNBC.
Longer-term inflation expectations
appear to have remained well
anchored, as reflected by
a broad range of surveys of
households, businesses, and
forecasters, as well as measures
from financial markets, Jerome Powell, Federal Reserve Chair, via CNBC.
CNBC reports that Powell is scheduled for a two-day visit
to Capitol Hill this week, beginning with a March 6
meeting with the House Financial Services Committee.
Credit: Wibbitz Top Stories Duration: 01:31Published
Jerome Powell Says the ‘Time Is Coming’ , for Interest Rate Cuts.
In an interview with '60 Minutes' on Jan. 4, the
Federal Reserve chair said the central bank is still on track
to reduce interest rates later this year, Fox News reports. .
There is no easy, simple, obvious
path. We have to balance the risk
of moving too soon or too late.
And there are different risks. , Jerome Powell, Federal Reserve chair, via '60 Minutes'.
We think the economy's in a good place.
We think inflation is coming down. , Jerome Powell, Federal Reserve chair, via '60 Minutes'.
We just want to gain a little more
confidence that it's coming down in
a sustainable way toward our 2% goal, Jerome Powell, Federal Reserve chair, via '60 Minutes'.
While the "time is coming" to cut rates, "it's not likely that this
committee will reach that level of confidence in time for the March meeting, which is in seven weeks," Powell said.
At its last meeting, the Federal Open
Market Committee kept rates steady
for the fourth consecutive time.
Rates currently sit "at a range of
5.25% to 5.5%," which is the most they've been in 22 years, Fox News reports. .
Investors and analysts expect the Fed
to start its rate cuts in May or June. .
The labor market remains strong.
353,000 jobs were added in January.
We have a strong economy. Growth is
going on a solid pace, the labor market
is strong: 3.7% unemployment, Jerome Powell, Federal Reserve chair, via '60 Minutes'.
With the economy strong like that,
we feel can approach the question
of when to begin to reduce
interest rates carefully. , Jerome Powell, Federal Reserve chair, via '60 Minutes'.
We want to see more evidence that
inflation is moving sustainably to 2%, Jerome Powell, Federal Reserve chair, via '60 Minutes'
Credit: Wibbitz Top Stories Duration: 01:31Published
Sam Bankman-Fried , Sentenced to 25 Years , for FTX Fraud.
On March 28, Sam Bankman-Fried was sentenced to
25 years in prison after being found guilty of defrauding
users of FTX, the now-collapsed cryptocurrency exchange. .
NBC reports that Lower Manhattan federal district
Judge Lewis Kaplan found the defense's arguments
misleading, speculative and logically flawed.
The judge accused Bankman-Fried of committing
obstruction of justice and tampering with
witnesses while mounting his defense.
Kaplan reportedly said that those
factors played a role in his decision
about how to sentence Bankman-Fried.
Prosecutors had originally sought a longer sentence
of 50 years, while the defense fought for
Bankman-Fried to get no more than six and a half years.
Prosecutors had originally sought a longer sentence
of 50 years, while the defense fought for
Bankman-Fried to get no more than six and a half years.
In November, Bankman-Fried was convicted on seven
criminal counts. He has been held at Brooklyn's
Metropolitan Detention Center while awaiting sentencing.
In November, Bankman-Fried was convicted on seven
criminal counts. He has been held at Brooklyn's
Metropolitan Detention Center while awaiting sentencing.
At one time, FTX was valued at over $30 billion
but ultimately collapsed in November of
2022 after announcing a major cash shortfall.
At one time, FTX was valued at over $30 billion
but ultimately collapsed in November of
2022 after announcing a major cash shortfall.
While on trial, Bankman-Fried was accused
of robbing FTX customers of nearly $8 billion,
which was partially used to fund the extravagant
lifestyles of the exchange's executives.
While on trial, Bankman-Fried was accused
of robbing FTX customers of nearly $8 billion,
which was partially used to fund the extravagant
lifestyles of the exchange's executives.
NBC reports that Bankman-Fried's sentence
is harsher than other white-collar crimes
in recent memory, such as Theranos founder
Elizabeth Holmes who received just 11 years.
NBC reports that Bankman-Fried's sentence
is harsher than other white-collar crimes
in recent memory, such as Theranos founder
Elizabeth Holmes who received just 11 years.
The outlet also notes that the judgement is more
similar to the 25-year sentence given to former
WorldCom CEO Bernie Ebbers or the 24-year
sentence given to Enron CEO Jeff Skilling.
The outlet also notes that the judgement is more
similar to the 25-year sentence given to former
WorldCom CEO Bernie Ebbers or the 24-year
sentence given to Enron CEO Jeff Skilling
Credit: Wibbitz Top Stories Duration: 01:30Published
Mumbai Becomes Asia's , Billionaire Capital , on Global Rich List.
NBC reports that Mumbai has become the Asian
capital with the highest number of billionaires,
dethroning Beijing at the top of the exclusive list. .
NBC reports that Mumbai has become the Asian
capital with the highest number of billionaires,
dethroning Beijing at the top of the exclusive list. .
According to the Hurun Research Institute's
global rich list, India's financial capital
registered 92 billionaires in 2024. .
Beijing comes in just below Mumbai with
91 billionaires, and Shanghai rounds out
the top three with a total of 87 billionaires.
Beijing comes in just below Mumbai with
91 billionaires, and Shanghai rounds out
the top three with a total of 87 billionaires.
The top of the list globally is New York
with 119 billionaires, followed by
London with a total of 97. .
The top of the list globally is New York
with 119 billionaires, followed by
London with a total of 97. .
According to the report, there are a total
of 3,279 billionaires globally in 2024,
an increase of 5% compared to 2023. .
NBC reports that China as a whole still has the
most billionaires overall with 814 in 2024, but
the country lost 155 billionaires compared to 2023. .
China had a bad year.
Wealth creation in China has gone
through deep changes these last few
years, with the wealth of billionaires
from real estate and renewables down, Hurun Research Institute's global rich list report, via NBC.
The United States comes in second with
800 billionaires, and India registered
a distant third place with 271.
The United States comes in second with
800 billionaires, and India registered
a distant third place with 271.
According to the report, artificial intelligence
played a significant role in increasing the
number of ultra wealthy people in the U.S. .
Whilst [Nvidia CEO] Jensen Huang
has grabbed many of the headlines
as Nvidia broke through the $2 trillion
mark, catapulting him into
the Hurun Top 30 as a result, , Hurun Research Institute's global rich list report, via NBC.
Whilst [Nvidia CEO] Jensen Huang
has grabbed many of the headlines
as Nvidia broke through the $2 trillion
mark, catapulting him into
the Hurun Top 30 as a result, , Hurun Research Institute's global rich list report, via NBC.
... the billionaires behind Microsoft,
Google, Amazon, Oracle and Meta
have seen significant surges in
their wealth as investors bet
on the value generated by AI, Hurun Research Institute's global rich list report, via NBC
Credit: Wibbitz Top Stories Duration: 01:31Published
Another UN Resolution Calling for , Gaza Cease-Fire Fails , to Pass Security Council Vote.
On March 22, a resolution calling for an immediate
cease-fire between Israel and Hamas in Gaza was
rejected by the United Nations Security Council. .
On March 22, a resolution calling for an immediate
cease-fire between Israel and Hamas in Gaza was
rejected by the United Nations Security Council. .
NBC reports that both Russia and China
voted against the United States-led measure. .
Vassily Nebenzia, Russia’s ambassador to the U.N., pointed
out that the resolution effectively contained a green light
for Israel to conduct a military operation in Rafah.
Vassily Nebenzia, Russia’s ambassador to the U.N., pointed
out that the resolution effectively contained a green light
for Israel to conduct a military operation in Rafah.
The vote came as U.S. Secretary of State Antony Blinken
visited Israel for talks centered on humanitarian aid
and the looming assault on the city of Rafah.
The vote came as U.S. Secretary of State Antony Blinken
visited Israel for talks centered on humanitarian aid
and the looming assault on the city of Rafah.
The U.S. has called a cease-fire crucial for
protecting civilians and expanding aid distribution
as over 2 million Palestinians face the threat of famine.
NBC reports that the failed resolution contained
no direct link to the release of hostages taken by
Hamas during the group's October 7 attack on Israel.
The resolution did reportedly support diplomatic
efforts "to secure such a cease-fire in connection
with the release of all remaining hostages.".
According to Israel, 130 hostages
remain in Gaza, while another
34 have already died in captivity.
Three previous attempts at
a resolution were vetoed by the U.S.
in October, December and February.
The failed fourth resolution came after the U.N.'s
Integrated Food Security Phase Classification
initiative warned that "famine is imminent" in Gaza. .
The initiative also warned that escalation
of the war could push half of Gaza's
entire population to the edge of starvation.
Credit: Wibbitz Top Stories Duration: 01:31Published
EPA Issues Ambitious, New Rules Aimed at , Cutting Carbon Emissions.
On March 20, the Biden administration
announced new rules regarding
automobile emissions standards.
On March 20, the Biden administration
announced new rules regarding
automobile emissions standards.
NBC reports that officials have called the
new regulations the most ambitious plan to
reduce emissions from passenger vehicles.
NBC reports that officials have called the
new regulations the most ambitious plan to
reduce emissions from passenger vehicles.
The new rules include scaled back
tailpipe limits requested by the
Environmental Protection Agency last April. .
The new rules include scaled back
tailpipe limits requested by the
Environmental Protection Agency last April. .
The new rules come amid slowing
sales of electric vehicles, a critical part
of the plan to meet the new standards.
The new rules come amid slowing
sales of electric vehicles, a critical part
of the plan to meet the new standards.
Last April, the auto industry cited
lower sales growth in its objection
to the EPA's strict standards. .
According to the EPA, the industry
could meet the limits if 56% of new
vehicle sales are electric by 2032.
According to the EPA, the industry
could meet the limits if 56% of new
vehicle sales are electric by 2032.
The EPA plan also called for at least 13% of plug-in
hybrids or other partially-electric cars, in addition
to more efficient gasoline-powered vehicles. .
The EPA's proposed standards would
avoid over 7 billion tons of planet-warming
carbon emissions over the next 30 years. .
The EPA's new rules apply
to model years 2027 to 2032.
The Biden administration's new rules
are set to ramp up to nearly meet
the EPA's limits by 2032.
Credit: Wibbitz Top Stories Duration: 01:30Published
'Devil Comet', May Join Solar Eclipse in , Rare Synchronized Celestial Event.
'Devil Comet', May Join Solar Eclipse in , Rare Synchronized Celestial Event.
NBC reports that a "devil comet" may
be visible during next month's highly
anticipated North American solar eclipse.
So-called "devil comets" are known for
occasional explosive outbursts, which give
the celestial objects their unique appearance.
Last year, an eruption on Comet 12P/Pons-Brooks
left it with two trails of gas and ice, which
give the appearance of devil horns. .
The unique comet is currently
visible in the early evenings from the
Northern Hemisphere on the west-northwest
horizon with the aid of binoculars or telescopes.
The comet is expected to brighten throughout the
month, until it becomes visible to the naked eye as it
reaches its closest point to the sun around mid-April.
NBC reports that the "devil comet" could be visible
during the upcoming April 8 total solar eclipse
if the comet flares significantly in the coming weeks. .
Those in the eclipse's path of totality,
from Texas to Maine, could be treated
to a rare synchronized celestial event. .
The comet was first observed by French
astronomer Jean-Louis Pons in 1812. .
In 1883, British-American astronomer
William Brooks became the second
to spot the rare celestial object.
NBC reports that Comet 12P/Pons-Brooks
orbit around the sun takes 71 years, making
sightings of the comet a truly rare occurrence.
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
In this Biz Pulse episode, we delve into market updates and the US Federal Reserve's announcement. Indian ADRs witness a decline, while IT stocks garner attention. Equity markets are on an upswing, while gold prices surge. Stay tuned for insights into these trends shaping the financial landscape.
#ADRStocks #ITMarket #StockMarket #Sensex #Nifty #IndianStocks #USStocks #USStockexchange #Businessnews #Worldnews #Oneindia #Oneindianews
~HT.178~PR.282~ED.101~GR.124~
Experts Say Fed's , Rate Hikes Could Impact , Housing Market for Decades.
Yahoo Finance reports that the housing market
has been showing signs of bouncing back as
this year's spring home-buying season begins.
For the second week in a row, mortgage rates
fell, reaching the lowest level in over a month. .
According to Freddie Mac, the average rate
on a 30-year fixed mortgage dropped to
6.74% from 6.88% the week before.
At the same time, supply is also
starting to rebound, with new listings
hitting a 17-month high in February. .
Despite the improvement, experts warn
that the Fed's aggressive rate-hiking campaign could
have long-lasting side effects on the housing market.
Despite the improvement, experts warn
that the Fed's aggressive rate-hiking campaign could
have long-lasting side effects on the housing market.
According to economist Gary Shilling, the Fed's
campaign has created a "perfect storm,"
with higher rates causing would-be
home sellers to put their plans on hold. .
It won't continue
indefinitely, but it certainly
is disruptive right now, Gary Shilling, Economist, via Yahoo Finance.
Redfin CEO Glenn Kelman shared similar views on the future of the housing market, warning it could take decades to move beyond the impact of the Fed's efforts.
Redfin CEO Glenn Kelman shared similar views on the future of the housing market, warning it could take decades to move beyond the impact of the Fed's efforts.
There's going to be low
supply for a long time to
come. What the Fed did…
will have a 30-year tail on it, Glenn Kelman, Redfin CEO, via Yahoo Finance.
Yahoo Finance reports that mortgage rates may be
unlikely to fall much further in the near term, meaning
that a more substantial rebound may still be far off.
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
US Economy , Added 353,000 Jobs in January.
According to the Labor Department's
Bureau of Labor Statistics, nonfarm
payrolls grew by 353,000 in January.
That number exceeded the Dow Jones estimate of 185,000, CNBC reports. .
The unemployment rate stayed at 3.7%.
Average hourly earnings rose 0.6%,
twice as much as the monthly estimate. .
Year-over-year, earnings jumped 4.5%,
which was also above the forecast of 4.1%.
The wage gains occurred as average hours worked declined, dipping to 34.1.
Professional and business services posted the most job growth for January with 74,000 positions.
Health care, retail trade, government, social assistance and manufacturing were also significant contributors.
Health care, retail trade, government, social assistance and manufacturing were also significant contributors.
Health care, retail trade, government, social assistance and manufacturing were also significant contributors.
The report, while showcasing the
resilience of the American economy, .
could prompt questions about the Federal Reserve's timeline for lowering interest rates, CNBC reports. .
Benchmark short-term borrowing costs were kept in place earlier this week, with the Fed indicating that inflation must show more signs of cooling.
Credit: Wibbitz Top Stories Duration: 01:30Published
The European Central Bank has slowed the pace of its interest rate increases, stepping back like the US Federal Reserve from a string of jumbo hikes aimed at snuffing out inflation.
Credit: euronews (in English) Duration: 01:02Published
Fed Raises Rates , by a Quarter Point.
The Federal Reserve issued its
tenth rate hike since last March on May 3.
The decision to hike interest rates by
a quarter of a point was unanimous. .
The..
Credit: Wibbitz Top Stories Duration: 01:30Published