1 indicating that job openings have reached their lowest point in over two years, CNN reports.
June saw available jobs drop for the second month in a row to 1.6 jobs per applicant.
The Federal Reserve, which has raised interest rates 11 times since March 2022, views the new data as an indicator that things are moving in the right direction.
By making things more difficult to purchase, the Fed hopes to subdue demand, which in turn helps the economy to attain a "soft landing," it says.
.
It is looking like a soft landing, but the problem is that we wonβt know whether this is a soft landing or whether conditions continue to weaken further and we get a recession four or
five months from now.
, Gus Faucher, an economist with PNC Financial Services, via CNN.
Both a recession and a
soft landing look like this, Gus Faucher, an economist with PNC Financial Services, via CNN.
The latest JOLTS report bolsters the prospect that the Fed can tame inflation without inducing carnage in the labor market, Wells Fargo economists Sarah House and Michael Pugliese, via CNN.
New data also shows that new hires dropped from 6.23 million to 5.91 million in June.
The number of people quitting their jobs dropped from 4.067 million to 3.722 million.
Layoffs dipped from
1.546 million to 1.527 million.
Job openings fell to their lowest level since April 2021, but there is still a large gap between the long-term average level, or one consistent with slack in the labor market.
, Oxford Economics economists Matthew Martin and Ryan Sweet, via CNN.
Further, while the quits rate fell,
the measure is quite volatile, and is still at a level that indicates continued pressure on wages as many workers leave jobs in search of other (higher-paying) opportunities, Oxford Economics economists Matthew Martin and Ryan Sweet, via CNN
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
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 didβ¦
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
Job Openings Sink , to 2-Year Low.
On Aug. 29, the Department of Labor said that job openings dropped from 9.1 million in August to 8.8 million in July.
On Aug. 29, the Department of Labor said that..
Credit: Wibbitz Top Stories Duration: 01:31Published
Federal Reserve , Likely Not Finished With , 2023 Rate Hikes.
NBC reports that another rate hike by the
Federal Reserve could be coming in September
as the Fed continues to fight..
Credit: Wibbitz Top Stories Duration: 01:31Published
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..
Credit: Wibbitz Top Stories Duration: 01:31Published
![Key Federal Reserve Inflation Gauge Rose 2.8% in March [Video]](https://video.newsserve.net/300/v/20240426/1373828506-Key-Federal-Reserve-Inflation-Gauge-Rose.jpg)
![Fears of Potential Iranian Attack Drive US Stocks Down Nearly 500 Points [Video]](https://video.newsserve.net/300/v/20240412/1372522960-Fears-of-Potential-Iranian-Attack-Drive-US-Stocks.jpg)
![Federal Reserve Posts Massive $114 Billion Loss in 2023 [Video]](https://video.newsserve.net/300/v/20240327/1371091068-Federal-Reserve-Posts-Massive-114-Billion-Loss-in.jpg)
![Biz Pulse: Upward Trend in Equity Markets, US Federal Reserve Announcement and Gold Price| Oneindia [Video]](https://video.newsserve.net/300/v/20240322/1370292644-Biz-Pulse-Upward-Trend-in-Equity-Markets-US.jpg)
![Experts Say Fed's Rate Hikes Could Impact Housing Market for Decades [Video]](https://video.newsserve.net/300/v/20240319/1369555822-Experts-Say-Fed-Rate-Hikes-Could-Impact.jpg)
![Job Openings Sink to 2-Year Low [Video]](https://video.newsserve.net/300/v/20230829/1357130739-Job-Openings-Sink-to-Year-Low.jpg)
![Federal Reserve Likely Not Finished With 2023 Rate Hikes [Video]](https://video.newsserve.net/300/v/20230807/1356301534-Federal-Reserve-Likely-Not-Finished-With-2023-Rate.jpg)
![US Economy Remains Resilient Despite Interest Rate Hikes [Video]](https://video.newsserve.net/300/v/20230804/1356202339-US-Economy-Remains-Resilient-Despite-Interest-Rate-Hikes.jpg)
