Tag Archives: Inflation

The upward movement we’re seeing in prices is not transitory and big tech will suffer from it, says one financial adviser.  “Wages are going up and typically what happens is they just don’t go down over time. So they don’t temporarily go up and go back down,” Chris Payne of Payne Capital Management told Yahoo Finance Live. “Even if you’re going out to the grocery store, things are just more expensive. So not only do I think inflation is not transitory, I think it’s here to stay. And I… Source link

Higher demand and reduced supply could be drivers for higher reads on inflation. Another reason? Simple math. Consider, for example, if prices increase by 30%. But what if prices fell by 30% before? Would that mean prices are back up to where they were? Percentages don’t tell the whole story, which is why looking at price levels can be just as important as looking at inflation rates. Economists refer to the distortions in relative price changes as “base effects.” What are base… Source link

Federal Reserve Chairman Jerome Powell on Wednesday downplayed the recent string of high readings of inflation, telling Congress that price pressures will still likely abate. On Tuesday, figures from the Bureau of Labor Statistics showed the Consumer Price Index increasing by 5.4% on a year-over-year basis in June, the fastest pace since August 2008. A read on producers also showed prices accelerating to the largest annual increase in over a decade, testing the Fed on its commitment to only… 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 Wednesday, July 14, 2021 Pandemic pressures linger but new pressures emerge June’s inflation data was a barnburner.  Data from the Bureau of Labor Statistics published Tuesday showed the consumer price index (CPI) rose 5.4% over last year on a headline basis, and 4.5% on a core basis. That measure strips out the more volatile components of food… Source link

Stock futures opened near the flat line Tuesday evening as investors looked ahead to more corporate earnings results and another batch of inflation data. Contracts on the S&P 500 was little changed. During Tuesday’s regular session, the blue-chip index rose to a record intraday high before pulling back and ending lower. Each of the Dow and Nasdaq also pulled back, with cyclical areas of the market like airline stocks and financials posting some of the biggest declines.  Concerns over the pace… Source link

Tuesday’s CPI inflation numbers made a splash. The index surged 5.4% over the last year, surpassing expectations of 4.9%. Core inflation (which excludes the volatile gas and food categories) was up 4.5% year-over-year. Both were up 0.9% over last month, the biggest jump since 2008. Here’s what analysts had to say about the report, and what it means going forward. Good news and bad news A big question surrounding inflation recently is whether it’s transitory or more likely to become more… Source link

A string of corporate news also moved individual stocks in London. Photo: Dominic Lipinski/PA Images via Getty Images Stocks in Europe slumped into the red on Thursday as concerns around rising inflation resurfaced after signals from the US Federal Reserve. In London, the FTSE 100 (^FTSE) nosedived 1.9%, hovering just above the 7,000 point mark, while the CAC (^FCHI) was 2.2% down in France, and the DAX (^GDAXI) fell 1.6 % in Germany. “The FTSE 100 fell with miners and banks the principal… 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 Wednesday, July 7, 2021 Pricing pressures stopped getting worse for the service sector last month If we wind back the clock to mid-May, the only idea it seemed investors wanted to discuss was inflation.  The argument from many economists and Federal Reserve officials — then and now — was that pricing pressures would prove “transitory,” or that… 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 Monday, June 28, 2021 With inflation no longer Greenspan’s ‘q’ word, here’s why generous worker pay matters. Does anyone remember the word “quiescent”? It’s an economic catchphrase popularized by Alan Greenspan, the former Federal Reserve chairman who presided over an impressive run of strong growth and stable inflation. During his lengthy… Source link

Surging inflation is creating a conundrum for the Federal Reserve, economist Nouriel Roubini cautioned on Wednesday, adding that spiking prices will persist and potentially tie the central bank’s hands. With demand soaring, the resulting supply and labor bottlenecks are lighting a fire under prices. Although the Fed insists the effects are “transitory,” Roubini — also known as “Dr. Doom” for his gloomy economic predictions — warned that the central bank won’t be able to tighten monetary… Source link