Federal Reserve Chair Jerome Powell says he won’t step down from his position if President-elect Donald Trump asks him to do so.
“No,” he said Thursday when asked about the matter during a news conference.
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The U.S. economy grew at a rate of 2.8% in the third quarter of 2024, according to Bureau of Economic Analysis (BEA) statistics released Wednesday.
The growth in the third quarter comes after a better-than-expected 3.0% growth rate in the second quarter of 2024, according to the BEA. Economists forecast that GDP would increase by about 3.0% in the third quarter, according to Forecast.com.
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The Biden-Harris administration has become synonymous with an economy in tatters. Americans are struggling with rising prices, stagnant wages, and increased obstacles to starting a business, buying a home or retiring. According to the Gallup Economic Confidence Index, Americans’ outlook on the economy from 2021 to 2024 has been negative.
Contrast this with the economic prosperity seen under the Trump administration. America enjoyed energy abundance, skyrocketing wages, a record number of startups and incredible stock market averages. A large part of this success can be credited to the 2017 Tax Cuts and Jobs Act (TCJA), a tax cut for families and small businesses that fueled one of the strongest economies in decades.
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Ohio’s average mortgage rate is the 12th highest in the nation, according to a new report.
Personal finance website WalletHub, a for-profit business, also says a Federal Reserve interest rate cut in September will have little impact on rates in the coming months because markets had previously accounted for it.
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Inflation fell slightly in September amid fears of a hotter-than-expected economy following strong job gains in the month prior, according to the latest Bureau of Labor Statistics (BLS) release Thursday.
The consumer price index (CPI), a broad measure of the price of everyday goods, increased 2.4% on an annual basis in September and rose 0.2% month-over-month, compared to 2.5% in August, less than the 2.3% rate that was expected, according to the BLS. Core CPI, which excludes the volatile categories of energy and food, rose 3.3% year-over-year in September, compared to 3.2% in August.
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The U.S. added 254,000 nonfarm payroll jobs in September as the unemployment rate ticked down to 4.1%, according to Bureau of Labor Statistics (BLS) data released Friday.
Economists expected 150,000 jobs to be added in September, slightly higher than the initially reported 142,000 job gain in August, and the unemployment rate to remain at 4.2%, according to MarketWatch. Meanwhile, previously reported job gains for July and August were revised up by 55,000 and 17,000, respectively, breaking a trend under the Biden-Harris administration of overestimating employment growth in initial estimates, with the cumulative number of new jobs reported in 2023 roughly 1.3 million less than previously thought.
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Federal Reserve Chairman Jerome Powell suggested migrants are helping drive rising unemployment during a press conference on Wednesday.
Powell spoke to reporters after the Fed announced it would lower its federal funds rate by 0.50% following disappointing job growth in both July and August. Unemployment currently sits at 4.2% — up from 3.4% in April 2023 — in what Powell suggested was largely a product of migrants crossing into the United States.
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The Federal Reserve cut interest rates on Wednesday for the first time since the COVID-19 pandemic. Many observers of Fed activity had predicted a quarter-point reduction but the central bank wound up cutting rates by a half-point.
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U.S. labor markets continued showing signs of weakening as job openings fell to 7.6 million in July, the lowest level since Feb. 2021. Job openings are now 4.6 million below their March 2022 high of 12.2 million, a more than 37 percent drop.
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Federal Reserve Chairman Jerome Powell on Friday indicated the bank is prepared to start cutting its key interest rate from its 23-year high, as inflation falls to more historic rates and the job market cools.
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Consumer prices rose again last month after dipping in June, according to newly released federal inflation data.
The U.S. Bureau of Labor Statistics on Wednesday released its Consumer Price Index, a key marker of inflation, which showed that consumer prices rose 0.2% in July, part of a 2.9% increase over the past 12 months.
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The U.S. unemployment rate once again ticked up in the month of June to 4.3 percent as another 352,000 Americans said they were unemployed, according to the latest data from the Bureau of Labor Statistics. Markets are crashing in response.
Overall, 1.47 million more Americans say they’re unemployed since Dec. 2022, with the number of unemployed now up to 7.16 million, the highest since Oct. 2021 following the Covid recession.
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The U.S. added 114,000 nonfarm payroll jobs in July as the unemployment rate ticked up to 4.3%, according to Bureau of Labor Statistics (BLS) data released Friday.
Economists anticipated that the country would add 175,000 jobs in July compared to the 206,000 added in initial estimates for June, and that the unemployment rate would remain stable at 4.1%, according to U.S. News and World Report. Federal Reserve Chairman Jerome Powell noted in a press conference on Wednesday that a continued slowdown in the labor market could be a sign of further softening in the economy and contribute to a possible cut to the federal funds rate and an easing in harsh credit conditions that have weighed on Americans.
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Based on data from a U.S. Treasury report, the federal government has amassed $142 trillion in debts, liabilities, and unfunded obligations. This staggering figure equals 93% of all the wealth Americans have accumulated since the nation’s founding, estimated by the Federal Reserve to be $152 trillion.
Unlike other measures of federal red ink that cover an arbitrary period, extend into the infinite future, or ignore government resources, the figure of $142 trillion applies strictly to Americans who are alive right now and includes the government’s commercial assets. Thus, it quantifies the financial burden that today’s Americans are leaving to their children and future generations.
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The Federal Reserve announced on Wednesday that it will not yet cut its benchmark federal funds rate in what is predicted to be the last in a streak of pauses as inflation and debt continues to cripple Americans.
The Fed’s decision not to change interest rates keeps the target in a range of 5.25% to 5.50% and marks the eighth meeting in a row where the Fed chose not to adjust the rate, according to an announcement from the Fed following a meeting by the Federal Open Market Committee (FOMC). The July decision marks the last pause before the Fed is widely expected to cut rates from their 23-year high at the FOMC’s September meeting as the economy eases and inflation is expected to trend slowly toward the Fed’s target.
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The U.S. economy grew at a rate of 2.8 percent in the second quarter of 2024, according to gross domestic product (GDP) statistics released by the Bureau of Economic Analysis (BEA) on Thursday.
Higher growth in the second quarter follows poor growth in the first quarter of 2024, which measured 1.4 percent after being revised down from an initial estimate of 1.6 percent, according to the BEA. Economists expected that GDP would increase by around 2.1 percent in the second quarter of 2024, in line with typical U.S economic growth rates.
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Inflation ticked down slightly year-over-year in June as rising prices continue to weigh on average Americans’ finances, according to the latest Bureau of Labor Statistics (BLS) release on Wednesday.
The consumer price index (CPI), a broad measure of the price of everyday goods, increased 3.0 percent on an annual basis in June and decreased 0.1 percent month-over-month, compared to 3.3 percent in May, according to the BLS. Core CPI, which excludes the volatile categories of energy and food, remained high, rising 3.3 percent year-over-year in June, compared to 3.4 percent in May.
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The number of insured unemployed individuals increased by 26,000 to 1,858,000, in the week ending June 29, the highest level since November 2021.
Seasonally adjusted initial unemployment claims reached 238,000, marking an increase of 4,000 from the previous week’s revised figure of 234,000.
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Pending home sales fell 2.1 percent in May, according to the National Association of Realtors.
NAR Chief Economist Lawrence Yun said home prices could dip in the coming months.
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Pending home sales in April fell 7.7%, according to the National Association of Realtors.
All four U.S. regions registered month-over-month and year-over-year declines.
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Americans’ real weekly earnings dropped sharply in April and still remain well below their level when President Joe Biden first took office, according to data from the Bureau of Labor Statistics (BLS).
Real average weekly earnings fell to $1,191.93 in April, declining by 0.4% in the month and 4.8% compared to the start of Biden’s term in January 2021, according to data calculated by the Daily Caller News Foundation from the BLS. Prices have risen over 19% since Biden first took office and 3.4% in the last year, degrading the value of Americans’ wages.
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Inflation ticked down slightly year-over-year in April but still remained high as rising prices continue to take a toll on average Americans’ finances, according to the latest Bureau of Labor Statistics (BLS) release on Tuesday.
The consumer price index (CPI), a broad measure of the prices of everyday goods, increased 3.4% on an annual basis in April and 0.3% month-over-month, compared to 3.5% in March, according to the BLS. Core CPI, which excludes the volatile categories of energy and food, remained higher, rising 3.6% year-over-year in April, compared to 3.8% in February.
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A measure of wholesale inflation that tracks prices before they reach consumers surged to its fastest annual rate since April 2023, according to new data released Tuesday by the Bureau of Labor Statistics (BLS).
The producer price index (PPI) rose 0.5 percent in April, totaling a 2.2 percent annual rate, far higher than estimates that the index would rise 0.3 percent in the month, according to the BLS. The report adds to fears that inflation is once again surging following the consumer price index jumping to 3.5 percent in March, up from 3.2 percent in February and far from the Federal Reserve’s 2 percent target.
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Many companies are looking to cut down on their debts as recent high inflation reports have made borrowing more expensive as the prospect of interest rate cuts by central banks diminishes, The Wall Street Journal reported Wednesday.
Even companies with already high credit outlooks are deleveraging to boost their rating with top agencies and reduce debt costs that have increased along with interest rates, while firms with lower ratings are needing to cut debt to maintain profitable operations, according to the WSJ. Investors have had to adjust their view about when interest rates might decline in recent weeks as persistently high levels of inflation have made it less likely that central banks around the world, including in the U.S., will cut interest rates, reducing the cost of holding debt.
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The Federal Reserve on Wednesday decided to hold interest rates steady at a 23-year high, a decision that was expected.
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August came early to the nation’s capital with last week’s round of March inflation data. The late summer weather in Washington, D.C., is notoriously hot and sticky, two accurate descriptors of the latest price increases facing families and businesses alike. Inflation is stubbornly high, and the Biden administration’s spendthrift public policies are to blame.
In the past 12 months, consumer prices rose 3.5 percent, the second month of accelerating annual inflation. In March alone, prices rose 0.4 percent. That may not sound like much, but it’s actually terrible. If that monthly inflation rate holds steady, prices will double in less than 16 years.
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Many investors are diversifying their portfolios from standard stocks and bonds as March’s inflation surge casts doubt on economy-boosting rate cuts from the Federal Reserve happening this year, according to Reuters.
The consumer price index increased to 3.5 percent year-over-year in March, up from 3.2 percent in February and far from the Fed’s 2 percent target. Markets prior to March’s inflation report anticipated a few rate cuts this year, leading investors to buy up stock in anticipation that markets would rise when cuts materialize, but the increasing possibility that the Fed will not cut rates this year has led investors to switch up their market strategy, according to Reuters.
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Bernie Moreno, the Republican nominee in the Ohio U.S. Senate race, used Wednesday’s inflation report to call out his opponent, incumbent U.S. Senator Sherrod Brown (D-OH), and President Joe Biden for their economic policies that are “crushing Ohio workers.”
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Major fabric and craft retailer Joann announced Monday that it was filing for bankruptcy as consumers pull back on spending due to harsh economic conditions.
The retailer recently reached an agreement with a majority of its financial stakeholders as well as other financing parties, giving the company around $132 million in new financing while also reducing the debt on the company’s balance sheet by around $505 million, according to an announcement from Joann. Retail sales across the U.S. economy have continued to slump in recent months, growing just 0.6 percent month-to-month in February, not including inflation, and declining 1.1 percent in January as consumers pull back on non-essentials as prices rise.
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Don’t look now, but U.S. labor markets appear to be churning in the wrong direction, as the unemployment rate jumped to 3.9 percent in February, and the unemployment level hit a new high for this cycle at almost 6.5 million, up 760,000 from its low this cycle of 5.7 million in Dec. 2022, according to the latest data from the Bureau of Labor Statistics.
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The Federal Reserve announced on Wednesday that it would not change its benchmark federal funds rate, but does project rate cuts later this year.
The Fed’s decision not to raise rates keeps the target range between 5.25% and 5.50%, the highest level since 2001, marking the fourth meeting in a row where the Fed chose to not adjust the rate, according to an announcement from the Federal Reserve following a meeting by the Federal Open Market Committee (FOMC). Investor projections for upcoming FOMC meetings are increasingly predicting a rate cut, with the market calculating around 58% odds that the rate will be reduced in March as of Jan. 31, according to CME Group.
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Numerous legacy media outlets are struggling with challenges posed by President Joe Biden’s economy and resorting to drastic measures, Axios reported on Friday.
Close to a dozen of these outlets are firing workers, dealing with employee strikes or looking to sell, according to Axios. The Federal Reserve’s imposition of high interest rates to bring down inflation is hindering their ability to accumulate more debt, complicating their efforts to extend the timeline for resolving their financial difficulties.
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Top U.S. bank JP Morgan Chase on Friday reported $49.6 billion in profits for 2023, a record for the bank, despite a sector crisis that shut down multiple smaller institutions.
Profits for the year were up for the bank despite net income bringing in only $9.3 billion in the fourth quarter, falling 15%, while the company brought in $39.9 billion in net revenue, up 12% for the quarter, according to JP Morgan’s fourth quarter earnings report. JP Morgan’s record profits come after a year of crisis for the sector, starting with a bank run in March at Silicon Valley Bank (SVB), which then spread to First Republic Bank and Signature Bank, prompting the Federal Deposit Insurance Corporation (FDIC) to step in and seize the banks, ultimately selling First Republic’s assets to JP Morgan.
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New documents reveal that, as the nation suffered from the strain of historically high inflation, employees at the Federal Reserve spent more time going through diversity, equity, and inclusion (DEI) training than addressing the financial crisis.
According to the Washington Free Beacon, the newly-obtained documents reveal that there were four DEI training sessions held in the spring and summer of 2021. These lessons featured such teachings as “correct pronoun usage is a civil right” and acknowledging “White privilege,” as well as demanding the use of “inclusive language” such as “Latinx,” a word that is meant to erase the historically gendered language used in Hispanic languages.
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In a poll of small business owners, 76 percent said that they had not seen an increase in sales during the holiday season as inflation and other economic conditions constrict consumers’ cash, according to Goldman Sachs.
Of small business owners surveyed, 55 percent said that their profit margins decreased this year, and a further 70 percent said that their own personal spending plans for their families were negatively impacted following their own assessment of the state of the economy, according to a poll by Goldman Sachs conducted from Dec. 1 to Dec. 8 of 337 small retail business owners. Consumer spending previously slowed in October as the Americans’ savings declined to $768.6 billion in the month, down from the over $1 trillion held in May and even further from the all-time high of almost $6 trillion held in April 2020.
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The Federal Reserve on Dec. 13 held the Federal Funds Rate—the rate at which banks lend to each other—steady at 5.25 percent to 5.5 percent, as the consumer inflation once again cooled to 12-month average level of 3.1 percent, according to the latest data compiled by the Bureau of Labor Statistics.
Leading the cooldown were drops in energy prices as gasoline dropped 6 percent in November, following a 5 percent drop in October.
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Inflation ticked slightly down year-over-year in November but continued to remain well above the Federal Reserve’s target, according to the latest Bureau of Labor Statistics (BLS) release on Tuesday.
The consumer price index (CPI), a broad measure of the prices of everyday goods, increased 3.1% on an annual basis in November, compared to 3.2% in October, according to the BLS. Core CPI, which excludes the volatile categories of energy and food, remained high, rising 4.0% year-over-year in October, compared to 4.0% in October.
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“Anti-woke economic terrorists have now wiped out $5 trillion in stock value.”
That was a headline from Afru.com bemoaning the sideways performance of Environmental, Social and Governance (ESG) funds the past year or so, accusing anyone opposed to ESG with inflicting “economic terrorism” and “erod[ing] financial portfolios of color” as “global investments in ethical companies have nosedived by nearly $5 trillion over the past two years.”
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Growth in consumer spending fell to the lowest point since March as Americans’ savings fall from the all-time highs seen during the COVID-19 pandemic, according to the Bureau of Economic Analysis (BEA).
Consumer spending, measured by the personal consumption expenditure (PCE), increased by $41.2 billion in the month of October, an increase of 0.2%, less than the 0.7% increase that was seen in September as Americans cut back, accordingto the BEA. The cooling in spending follows a huge decline in the amount of savings Americans collectively hold, falling from over $1 trillion in May to $768.6 billion in October, far from the all-time high of almost $6 trillion in April 2020, according to the Federal Reserve Bank of St. Louis.
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The seasonally adjusted inflation rate for October 2023 remained unchanged from the previous month and sits at 3.2%, according to the Labor Department’s Consumer Price Index Report released Tuesday.
The rate increased by 3.2%, compared to October 2022. In September, inflation was at 3.7% compared to the same time the previous year.
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The Federal Reserve on Wednesday kept its benchmark interest rates, as expected.
The Fed held the rate amid a growing economy and labor market and inflation that remains about the central bank’s target. But additional increases also raise concerns about throwing the U.S. economy into a recession.
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The U.S. economy grew at a rate of 4.9% in the third quarter of 2023, according to Gross Domestic Product (GDP) statistics released by the Bureau of Economic Analysis (BEA) on Thursday morning.
In the second quarter of 2023, real GDP rose 2.1% after being revised down from an initial estimate of 2.4%. Economists expected that GDP would be around 4.7% for the third quarter of 2023, far higher than the 2% to 3% that is common for the U.S.
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Small businesses are feeling the effects of the Federal Reserve’s interest rate hikes as tightening credit puts more businesses and workers in dangerous positions, according to The New York Times.
Interest payments for small businesses will rise to about 7 percent of revenues next year on average, as opposed to being just 5.8 percent of revenues in 2021, according to the NYT. The Fed has raised its federal funds rate to a range of 5.25 percent and 5.50 percent following a series of 11 hikes that started in March 2022, bringing the rate to its highest point in 22 years.
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A new report from the Federal Reserve claims that the average American household actually saw an increase in its net worth during the Chinese Coronavirus pandemic.
As reported by Axios, the Fed’s Survey of Consumer Finances, which is released every three years, came out on Wednesday. It was lasted conducted in 2019, thus meaning the next iteration would be held after the pandemic, covering the three-year time period from start to finish.
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Bankruptcies are rising for the first time in years as more Americans feel the pressure of declining economic conditions without the reprieve of President Joe Biden’s COVID-19 pandemic-era aid programs.
Americans filed more than 39,000 personal bankruptcy cases in August 2023, up 18% year-over-year, with bankruptcies beginning to spike after reaching record lows in 2021 and 2022, with the number of filings rising for all chapters for the first time year-over-year since 2010, according to data from the U.S. Courts. The number of bankruptcies is rising as Americans are increasingly burdened by high interest rates and falling real wages, while the COVID-19 pandemic stimulus and programs that were buoying Americans with debt begin to lose effect, according to experts who spoke to the Daily Caller News Foundation.
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The current confluence of economic conundrums elevates risks massively for the prosperity of Americans, especially those of modest means. These unprecedented, concurring economic contradictions flow directly from the dire mistakes of the 2020 virus panic.
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U.S. Rep. Tom Emmer has reintroduced legislation that would ban the Federal Reserve from issuing a central bank digital currency (CBDC), which the majority whip described as a potential threat to the “American way of life.”
As the Biden administration explores the possibility of developing a digital dollar, Emmer said the idea could dismantle “Americans’ right to financial privacy.”
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Inflation rose significantly in August, marking the second month in a row that inflation has ticked up, according to the latest Bureau of Labor Statistics (BLS) release on Wednesday.
The Consumer Price Index (CPI), a broad measure of the prices of everyday goods, increased 3.7% on an annual basis in August, compared to 3.2% in July, according to the BLS. Core CPI, which excludes the volatile categories of energy and food, remained high, rising 4.3% year-over-year in August, compared to 4.7% in July.
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The Federal Reserve’s preferred method of tracking inflation went up in July, following a similar move by the Consumer Price Index (CPI), according to the Bureau of Economic Analysis (BEA).
The Personal Consumption Expenditures (PCE) price index rose 0.2% for the month of July, culminating in a 3.3% rise for the year in the Fed’s preferred measure of inflation, up from 3.0% year-over-year in June, according to BEA data. The CPI, which is another measure of inflation, rose 3.2% in July, up from 3.0% in June year-over-year.
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Economic growth was revised downward for the second quarter of 2022, coming more in line with economists’ original expectations, according to the Bureau of Economic Analysis (BEA).
Yearly real Gross Domestic Product (GDP) was revised down from 2.4% to 2.1% growth in the second estimate for the second quarter of 2023, according to the BEA. The revision is more in line with original expectations from economists of around 2% growth for the second quarter, showing signs of a cooling economy.
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