Tag Archives: economist

Down goes the U.S. unemployment rate in 2022, contends J.P. Morgan chief U.S. economist Michael Feroli. “I think by the end of the year [2022] we could see the unemployment rate around 3%,” said Feroli on Yahoo Finance Live. “It’s stunning to see how much the rate has fallen in the last five months. We expect that pace of decline to slow, but it doesn’t take much to get below 4%. Even with a tick up in the labor participation rate which has been depressed over the last year and a half.” To… Source link

A key Democratic selling point of the new Build Back Better framework announced Thursday is that it’s fiscally responsible. “It’s fully paid for,” President Biden declared in a press briefing about the plan. “Over the next 10 years, it will not add to the deficit at all.” The White House summary of the bill goes even further and suggests the bill will actually reduce the deficit. On the spending side of the ledger, the president is pushing for $1.75 trillion in new spending offset… Source link

The U.S. economy will be battling a continued slowdown in 2022 as it contends with sticky inflation and supply chain bottlenecks, reasons Goldman Sachs (GS) chief economist Jan Hatzius.  “I would say growth is clearly slowing. Obviously we are past the peak [growth] rate, but it’s a relatively graduate slowdown,” said Hatzius on Yahoo Finance Live.  Hatzius and his team made headlines earlier this month for cutting their 2021 GDP growth estimate to 5.6% from 5.7%. The group also issued a… Source link

Consumers may be getting less “bang for their buck” as companies have begun to offer fewer services in lieu of raising prices, Alan Cole, former staff for Congress’ Joint Economic Committee and policy director at Full Stack Economics. Generally, inflation occurs when the price of a good increases, so that consumers pay more for what they could previously purchase for a cheaper price. “But there’s another way that inflation can happen, and that’s when you’re paying the same amount, but… Source link

Now is the time to hit your boss up for a raise — or even look for a new job, says one economist.  “Worker power is so high right now. That leverage is there because of the tight labor market,” Glassdoor Senior Economist Daniel Zhao told Yahoo Finance Live. “Demand for workers is still red hot.” “Now is a good time to ask for that raise or to even ask for more benefits or more flexibility in the work arrangements,”said Zhao. “Employers right now are not just raising wages, they’re also… Source link

Physical currency and hard cash may soon be a thing of the past, Eswar Prasad, Cornell University economics professor and author of “The Future of Money” told Yahoo Finance Live. “The end of physical currency, cash, is certainly drawing near, and cryptocurrencies, including bitcoin (BTC-USD), have certainly paved the way for that revolution,” Prasad said. The digitalization of transactions has been well underway for the past few decades, but serious discussions regarding a fully-digital… Source link

Supply chain tightness is causing heightened concern over the growth of the U.S. economy while companies mired in trucking and shipping delays scramble to find alternative routes. “The supply chains are everything at this point,” Frances Donald, global chief economist and global head of macroeconomic strategy at Manulife Investment Management, told Yahoo Finance Live (video above). “It’s never been harder to create an outlook for the fourth quarter in large part because we have absolutely no… Source link

Despite a labor shortage brought about largely by the COVID-19 pandemic, companies can find workers by offering “fair wages,” Brian Deese, the top economic adviser to President Joe Biden, told Yahoo Finance on Monday. Deese, the Director of the National Economic Council, pointed to coronavirus fears and child care obligations amid remote schooling as key reasons why unemployed Americans have stayed on the sidelines. However, employers can overcome these obstacles by providing fair… Source link

As economic activity bounces back and the labor market continues to improve, RSM Chief Economist Joe Brusuelas told Yahoo Finance Live the U.S. economy is “entering boomtown.” “I think we’re about to pivot from recovery to expansion in the economy,” Brusuelas said. “It’s appropriate that members of the Federal Reserve begin to signal to markets that things are not going to be the same forever. It’s appropriate [for the Fed] to begin to think about tapering the pace of asset… Source link

President Joe Biden’s first 100 days in office have been dominated by government spending proposals. On Friday, Biden unveiled his $1.5 trillion “skinny budget” – a precursor to the full annual budget. It comes on top of his $1.9 trillion COVID-relief package and his $2.3 trillion infrastructure proposal. Tyler Goodspeed, former acting chairman of the Council of Economic Advisers under former President Trump, told Yahoo Finance Live all that spending is not prudent at a time when the… Source link