At their last meeting in December, U.S. Federal Reserve officials were worried about inflation getting stuck above their 2% target and had watched job gains seesaw in what seemed an emerging decline.
Many economists have felt relief over continued GDP growth. But ongoing data releases suggest that the foundation of the economy — consumer spending — isn’t sustainable.
Economists and analysts aren’t convinced that an expansion of oil and gas production will lower consumer prices.
Next week brings a slew of earnings from big tech companies and from other blue chips in areas such as credit cards, defense, energy and telecoms. Wednesday is shaping up to be the busiest day, with the Federal Reserve poised to make its first rate decision under a Trump presidency,
The author examines the money supply represented by M2, the Federal budget deficit, the Fed’s previous adventures with QE, and the correlation to inflation. Click to read.
Progress reducing the rise in consumer prices has stalled, with recent data coming in hotter than expected. By pressuring the Federal Reserve, Trump could reignite inflation.
Corporate earnings are coming in strong. Investors are also seeing the Trump administration take a less aggressive approach to tariffs than some had expected.
The Labor Department released the inflation report for December, which showed prices were up 2.9% from a year ago, in line with economists expectations and up from 2.7% in November.
An analysis of the Federal Reserve's recent $3.5 billion reduction in its securities portfolio, part of ongoing quantitative tightening efforts.
U.S. inflation likely worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much this year.
The pressure on the Fed to declare the race over and continue lowering interest rates is real. It would be a mistake to cave any further. Some measures show inflation holding steady. Others show it trending back up since last July. Either way, it’s above the Fed’s 2% target, and now the 10-year rate is pointing up.