Congressional Budget Office says inflation to last into 2023
The nonpartisan agency expects the consumer price index to rise 6.1% this year and 3.1% in 2023, above a long-term baseline of 2.3%.
Economy
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With Indianapolis 500 at full throttle, business is booming again
Locals don’t need studies to reinforce what they already know—this month is revving up to be the best fiscal May since the 100th running of the race in 2016.
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U.S. gasoline prices rise again on talk of banning Russian oil
Oil prices soared early Monday before retreating. Benchmark U.S. crude surged to $130 a barrel overnight, then moderated to around $119, a 3% gain, in afternoon trading. The international price skyrocketed to $139 before falling back to about $123 a barrel.
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IBJ Podcast: Pete The Planner says stimulus ahead ‘is going to blow people’s minds’
The U.S. economy is on the verge of potentially the greatest boom time of all time, according to Peter “Pete the Planner” Dunn. It will be fueled at least in part by the enhanced child tax credit, which is part of the American Rescue Plan stimulus package.
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U.S. employers add 916,000 jobs in March as hiring accelerated
Last month, hiring strengthened across the economy. Restaurants, hotels and bars—the sector that was most damaged by the virus—added 216,000 jobs. Construction companies, aided by better weather after severe storms in February, gained 110,000.
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Articles
Fed officials signal rates might head to ‘restrictive’ levels
Federal Reserve officials agreed when they met earlier this month that they may have to raise interest rates to levels that would weaken the economy as part of their drive to curb inflation, which is near a four-decade high.
Poll: U.S. economy bigger priority than punishing Russia
While broad support for U.S. sanctions has not faltered, the balance of opinion on prioritizing sanctions over the economy has shifted, according to the poll from The Associated Press-NORC Center for Public Affairs Research.
U.S. might be barreling toward recession in next year, more experts say
Although major swaths of the economy—including the job market and consumer spending—remain robust, there are mounting worries that rising borrowing costs for consumers and businesses, after years of near-zero interest rates, could cause a sudden retrenchment.
Americans collecting unemployment benefits hit 53-year low
American workers are enjoying historically strong job security two years after the coronavirus pandemic plunged the economy into a short but devastating recession.
Retail sales rise 0.9% as consumers show resilience
Consumers are providing critical support to the economy even after a year of seeing prices spiral higher for gas, food, rent, and other necessities.
Bezos spars with Biden White House over inflation
The White House responded by pointing out that Jeff Bezos’ attacks emerged days after Biden met in the Oval Office with the labor leaders behind Amazon’s unionization drive, which the company has vehemently opposed.
U.S. inflation hit 8.3% last month, down slightly from 40-year high
Still, Wednesday’s report contained some cautionary signs that inflation may be becoming more entrenched. Excluding the volatile food and energy categories, so-called core prices jumped 0.6% from March to April—twice the 0.3% rise from February to March.
High inflation leaves food banks struggling to meet needs
Food banks across America say negative economic conditions are intensifying demand for their support at a time when their labor and distribution costs are climbing and donations are slowing.
Fed: Inflation, Ukraine biggest threats to financial system
The observations came in the Federal Reserve’s semiannual Financial Stability Report that looks at trends in trading and investing as well as broad economic issues.
Dollar surges to 2-decade high as investors seek refuge
Rising inflation that has caused the biggest jump in prices in 40 years has spurred the Federal Reserve to aggressively raise interest rates, which increases demand for U.S. dollars.
Here’s how higher Fed rates stand to affect Americans’ finances
Economists and investors foresee the fastest pace of Federal Reserve rate increases since 1989. The result could be much higher borrowing costs for households well into the future.
Economic outlook for agricultural economy mixed
Sentiment of the agricultural economy among farmers ticked higher in April, but they are still showing less confidence than they did a year ago, according to the monthly Purdue University/CME Group Ag Economy Barometer.
U.S. employers post record employment openings, job quits
Employers posted 11.5 million job openings in March, more evidence of a tight labor market that has emboldened millions of American workers to seek better paying jobs and contributed to the biggest surge in inflation in four decades.
Key inflation gauge jumped 6.6% in March, most since 1982
Yet, there were signs in Friday’s report from the Commerce Department that inflation might be slowing from its galloping pace and perhaps nearing a peak, at least for now.
Yellen says more shocks likely to ‘challenge the economy’
Treasury Secretary Janet Yellen said Thursday in an address at the Brookings Institution that countries need to build in “recession remedies” to protect people in the U.S. and globally going forward.
U.S. economy shrank by 1.4% in first quarter, but consumers kept spending
The economy’s overall decline in the January-March quarter does not mean a recession is likely in the coming months. Most economists expect a rebound this quarter as solid hiring and wage gains sustain growth.
U.S. consumers still confident, but slightly less so
U.S. consumer confidence dampened slightly in April but remains high even as inflation continues to cloud optimism about the rest of the year.
Why the Fed worries about strongest U.S. job market in decades
As the Federal Reserve sees it, the surge in job postings forces employers to boost wages to attract and keep workers. Those higher labor costs are then passed to customers in the form of higher prices, thereby helping fuel inflation.
Retail sales rose 0.5% in March amid soaring inflation
Soaring prices on everything, particularly at the gas pump, are now making shoppers choosier about how they spend their money.