Tag Archives: Inflation

Many banks are finally increasing the yields on their online savings accounts and certificates of deposit, tracking the interest-rate hikes the Federal Reserve started in March to combat higher prices. For instance, Ally Bank increased its online savings account’s annual percentage yield (APY) to 0.90% from 0.75% last week, while American Express upped its high-yield savings account yield to 0.75% from 0.65%. More increases could be on the way after the Fed this week hiked its rate again —… Source link

The Federal Reserve on Wednesday hiked interest rates by the most since 1994 in an effort to tamp down inflation that’s hitting Americans on every front. The average price at the gas pump is now over $5 a gallon, airline fares were up 12.6% from April to May, and the food index rose 10.1% year-over-year in May. Unfortunately, personal finance guru Suze Orman, co-founder of SecureSave and host of the “Women & Money” podcast, has more bad news. Inflation is “here to stay for quite a while,”… Source link

With inflation hitting a 40-year high and gas breaking $5 a gallon, all eyes are on the Fed ahead of Wednesday’s Federal Open Market Committee (FOMC) meeting. According to Drew Matus, chief market strategist at MetLife Investment Management, the Fed addressing inflation isn’t a matter of “if” but rather to what extent for investors. “The real question right now is: What’s going to be the cost of handling the inflation story?” Matus said on Yahoo Finance Live (video above). “I think… Source link

U.S. stock futures traded sharply lower Monday morning, with traders betting a fresh decades-high print on inflation will force the Federal Reserve to get even more aggressive than previously anticipated to help ease rising prices. Contracts on the S&P 500 and Nasdaq 100 slid more than 2% and touched the lowest levels since November 2020 during the overnight session. Dow futures sank by more than 500 points, or about 1.7%. Treasury yields rose across the curve, and the benchmark 10-year yield… Source link

It’s been over a year since the American workplace turned upside down, with employees quitting en masse in search of more fulfilling jobs and flexible work arrangements. But as inflation hits a 40-year high, stragglers have found yet another convincing reason to jump ship. “It’s a worker’s market,” says Andrew Flowers, labor economist at job advertisement firm Appcast. “And this bargaining power, it means that, with high inflation, this is the time to either ask for a raise or to… Source link

For nearly a year, inflation has been hammering Americans. Every month when the Consumer Price Index report gets released, rates have stayed high or gone higher. Hopes that elevated prices were beginning to settle were dashed Friday morning when the Bureau of Labor Statistics (BLS) released data showing that the CPI, its broad measure for prices of goods and services, reached 8.6% for the month of May. The number represents the highest level of inflation in the U.S. since 1981, and it has top… Source link

The writer is former Chair of the FDIC and former Assistant Secretary of the U.S. Treasury for Financial Institutions. In today’s society, finger pointing has replaced accountability. Instead of owning up to our shortcomings, we increasingly want to blame others. So it was refreshing that in a recent CNN interview, Janet Yellen, the first female U.S. Treasury Secretary, said that she had been wrong in her early predictions that inflation would be transitory. With welcome candor, she admitted… Source link

Inflation continued to surge in May, increasing at the quickest pace in 40 years as consumers face rising challenges at the gas station and grocery store. The Consumer Price Index (CPI) published Friday by the Bureau of Labor Statistics rose 8.6% from a year ago, up from April’s reading of 8.3% and higher than economists had projected. Federal Reserve policymakers tasked with bringing prices back down to earth are likely to take cues from May’s CPI report on how aggressively they need to… Source link

(Bloomberg) — US inflation accelerated to a fresh 40-year high in May, a sign that price pressures are becoming entrenched in the economy. That will likely push the Federal Reserve to extend an aggressive series of interest-rate hikes and adds to political problems for the White House and Democrats. Most Read from Bloomberg The consumer price index increased 8.6% from a year earlier in a broad-based advance, Labor Department data showed Friday. The widely followed inflation gauge rose 1% from… Source link

U.S. consumer prices accelerated in May to the highest since 1981, as Americans grapple with a surge in the cost of gas, food, and shelter, data showed Friday. The Bureau of Labor Statistics’ May Consumer Price Index (CPI) showed a year-over-year increase of 8.6% last month, up from 8.3% in April. Economists were expecting an 8.3% increase in May, according to estimates compiled by Bloomberg. On a monthly basis, the broadest measure of inflation climbed 1.0%, compared to 0.3% in April. “Core”… Source link