Tag Archives: Inflation

Inflation? Oh yeah, I’m old enough to remember. As I’m sure you saw, inflation numbers came out red-hot on Thursday, with prices for the month of January rising at an annualized rate of 7.5%, the highest since February 1982. “This is a big shock to me,” says Jian Yang, professor of finance at University of Colorado. “When I hear that this inflation rate is the highest in 40 years, that really causes some concern about a challenge to the U.S. economy.” So I think it’s worth going… Source link

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Friday, February 11, 2022 No rest for inflation weary consumers Alas, the wizard Gandalf could only hold the line for so long. After the government reported consumer prices ran white-hot in January, yields on the 10-year Treasury finally breached the psychologically-key 2% threshold on Thursday, which sent stocks into a fresh tailspin. Perhaps I… Source link

Stock futures dipped Thursday evening to add to earlier losses across the three major indexes, with jitters over a swift tightening of financial conditions increasing on the heels of a multi-decade high print on inflation. Contracts on the S&P 500 fell. The index slid by 1.8% earlier on Thursday and the Nasdaq dropped 2.1%, as technology shares came under pressure while Treasury yields spiked. The benchmark 10-year yield broke above 2% for the first time since August 2019. Stocks sold off and… Source link

(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. Most Read from Bloomberg Inflationary pressures in the U.S. continued to heat up at the start of the year, data are expected to show, likely putting a Federal Reserve interest-rate increase next month on autopilot. The consumer price index probably jumped 7.3% in January from a year ago, the largest annual advance since early 1982, according to the median projection in a Bloomberg… Source link

Progressive Congresswoman Alexandria Ocasio-Cortez (D-NY) told Yahoo Finance in an exclusive interview that corporate “price gouging” has fueled inflation, placing the blame largely on dominant companies that hike prices and rake in profits without fear of competition.  She strongly rejected claims that government stimulus in response to COVID-19 has caused the price spike, warning that such a diagnosis of the problem could lead to spending cuts with dire consequences for millions of people… Source link

Inflation in December was the hottest in nearly 40 years, according to the Federal Reserve’s favored gauge, released this morning. U.S. consumers have been confronted with higher prices for everything from gasoline to groceries, cars to dishwashers. There’s one industry, though, that’s undergoing a pricing war that has prevented increases. Have you looked at your mobile phone bill lately? “At a time when seemingly every other industry in America is raising prices, the wireless industry… Source link

Federal Reserve Chairman Jerome Powell on Wednesday all but confirmed that the central bank will raise interest rates in its next policy-setting meeting in mid-March, as the central bank continues to battle rising prices. “I would say that the committee is of a mind to raise the federal funds rate at the March meeting, assuming conditions are appropriate for doing so,” Powell said in a press conference after the central bank opted to hold the short-term federal funds rate at near zero. But… Source link

With inflation at a near 40-year high, the biggest corporations are cashing in “on the backs of the American people,” by crimping competition and raising prices, said Senator Mark Kelly (D, AZ). In Kelly’s home state of Arizona, its largest cities saw cost pressures outpace the national average last year, with inflation rising 9.7% last year in the Phoenix metro area, compared to 7%, according to data from the Bureau of Labor Statistics. “We’re at full employment [in Arizona] right now …… Source link

As 2022 quickly progresses towards the end of a turbulent first month for markets, it appears that the transitory vs. persistent inflation debate, which was a hot topic for financial markets in the late summer and early fall of 2021, is coming to a close: Inflation has been more persistent than a transient and impermanent blip in an otherwise vibrant economy. The Federal Reserve described high inflation rates as transitory as recently as November, and while some analysts remain firmly seated… Source link

President Joe Biden acknowledged that a major problem facing Americans remains high inflationary pressures, but said Wednesday that a large share of the dilemma falls on the shoulders of the nation’s central bank. “A critical job in making sure elevated prices don’t become entrenched rests with the Federal Reserve, which has a dual mandate: employment and stable prices,” Biden said on the eve of the one-year anniversary of his inauguration. The price stability mandate is in flux, where the… Source link