How the Fed is ‘collapsing’ real estate activity with higher interest rates
U.S. real estate has undergone a dramatic slowdown in transaction activity in the months since the Federal Reserve began jacking up interest rates. Sales of existing homes plunged from peak pandemic levels to about 4.1 million in November (see chart) from over 6 million units sold per year in 2021 as the Fed has dramatically […]
Inflation is expected to have declined in December
A woman shops in a supermarket as rising inflation affects consumer prices in Los Angeles, California, June 13, 2022.Lucy Nicholson | ReutersThe pace of consumer inflation is expected to have fallen slightly in December from the prior month because of a sharp drop in gasoline and energy prices, but the annual rate is still likely […]
Powell says Fed might make unpopular decisions to stabilize prices
Federal Reserve Chairman Jerome Powell on Tuesday emphasized the need for the central bank to be free of political influence while it tackles persistently high inflation.In a speech delivered to Sweden’s Riksbank, Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.”Price stability is the bedrock of a healthy economy and […]
Americans lean heavily on credit cards amid inflation
D3sign | Moment | Getty ImagesWith day-to-day expenses staying high due to inflation, more Americans are relying on credit cards to make ends meet.As the personal savings rate sank near an all-time low, credit card balances jumped 15% year over year, according to the latest quarterly report from the Federal Reserve Bank of New York, notching […]
‘Markets are going to get rocked’ as Fed is likely to push rates higher, economist warns
The Federal Reserve is likely to raise interest rates more than the markets now expect, says Ricardo Reis, an economist at the London School of Economics. “Markets are going to get rocked,” Reis told MarketWatch on the sidelines of the American Economic Association annual meeting in New Orleans. “All the risks are on the upside. […]
Fed’s Bullard says 2023 on track to be a ‘disinflationary year’
High U.S. inflation is likely to recede in 2023 thanks to aggressive Federal Reserve efforts to raise interest rates and cool off the economy, a senior central bank official said. James Bullard, president of the St. Louis Federal Reserve, said higher rates should help curb inflation by slowing the economy and reducing the demand for […]
Fed’s Kashkari backs interest rate hikes ‘at least the next few meetings’
The Federal Reserve should keep raising its policy interest rate until it is confident inflation has peaked and that means interest rate hikes “at least at the next few meetings,” said Minneapolis Fed President Neel Kashkari on Wednesday. In an essay published on his regional bank’s website, Kashkari said that he has projected that the […]
Why everyone thinks a recession is coming in 2023
People who lost their jobs wait in line to file for unemployment following an outbreak of the coronavirus disease (COVID-19), at an Arkansas Workforce Center in Fort Smith, Arkansas, U.S. April 6, 2020.Nick Oxford | File Photo | REUTERSRecessions often take everyone by surprise. There’s a very good chance the next one will not.Economists have […]