Core U.S. inflation rises to 40-year high, likely securing big Fed hike
The report stresses how high inflation has broadened across the economy, eroding Americans’ paychecks and forcing many to rely on savings and credit cards to keep up.
Economy
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Retailers’ stockpiles mean holiday discounts starting now
After struggling with product shortages for much of the pandemic, the country’s retailers are now facing an unprecedented glut of unsold merchandise that’s cutting into profits, derailing holiday plans and threatening to drag down broader U.S. economic growth.
Going strong: U.S. dollar gained value against key currencies in past year
When the dollar is strong, a U.S.-based company that sells products overseas earns fewer dollars. On the flip side, the cost of imported goods and foreign expenses are lower.
International group warns of higher recession risk, darker global outlook
The Russian invasion of Ukraine, the ongoing COVID-19 pandemic, rising inflation and worsening climate conditions are impacting world economies and exacerbating other crises, like food insecurity and high debt levels held by lower-income countries.
OPEC+ makes big oil cut to boost prices; pump costs may rise
The alliance of oil-exporting countries on Wednesday decided to sharply cut production to support sagging oil prices, a move that could deal the struggling global economy another blow and raise politically sensitive pump prices for U.S. drivers just ahead of elections.
Poll: Many pessimistic about improving standard of living
Most of those polled said that raising a family and owning a home are important to them, but more than half said these goals are harder to achieve compared with their parents’ generation.
U.S. job openings drop to 10.1M, lowest since June 2021
U.S. job openings plummeted in August, likely a welcome sign for Federal Reserve officials as they seek to cool demand for workers without triggering a spike in unemployment.
U.S. consumers spent slightly more in August
The figures suggest that the economy is showing some resilience despite sharply rising interest rates, violent swings in the stock market, and high inflation.
College Football Playoff title game generated $156M in spending
Commissioned by the local organizing committee, the study generally covered a four day period from Jan. 7 to 10. It found about 56,000 people visited Indianapolis for the game, spending an average of $281 per day.
U.S. jobless claims fall unexpectedly to lowest since late April
Applications for U.S. unemployment insurance dropped unexpectedly to a five-month low, suggesting robust demand for workers amid economic uncertainty.
U.S. consumer confidence rises for second month
A strong job market and lower gas prices appear to be contributing to more optimistic views of the economy. But inflation and rising interest rates both threaten Americans’ propensity to spend.
U.S. business activity gauge improves, but still shows contraction
The improvement in bookings suggests demand is holding up yet remains tenuous as customers of service providers adjust to still-elevated prices and higher interest rates.
Powell’s stark message: Inflation fight could cause recession
The Federal Reserve delivered its bluntest reckoning Wednesday of what it will take to finally tame painfully high inflation: Slower growth, higher unemployment and potentially a recession.
Fed attacks inflation with another big hike and expects more
The Federal Reserve boosted its benchmark short-term rate, which affects many consumer and business loans, to a range of 3% to 3.25%, the highest level since early 2008.
FedEx to close 90-plus stores, put off hiring as demand slumps
The company warned it will likely miss Wall Street’s profit target for its fiscal first quarter that ended Aug. 31. And it said it expects business conditions to further weaken in the current quarter amid weaker global volume.
Retail sales saw slight increase in August amid inflation
Overall spending has slowed and shifted increasingly toward necessities like food, while spending on electronics, furniture, new clothes and other non-necessities has faded.
U.S. wholesale inflation declined last month to still-high 8.7%
The cost of services—which are increasingly driving consumer inflation—rose 0.4% in August, driven by higher prices for public transportation, car rentals and some financial services.
U.S. inflation slows for second month but remains stubbornly high
Sharply lower prices for gas and cheaper used cars slowed U.S. inflation in August for a second straight month, though many other items rose in price, indicating that inflation remains a heavy burden for American households.
Brad Chambers: Economic momentum shows Indiana is playing to win
But like any good businessperson, our eyes must be on the horizon, scanning for risks that could endanger Indiana’s future growth.
Powell: Fed hoping higher rates won’t mean deep U.S. recession
New research released Thursday concluded that the Federal Reserve will probably have to accept a much higher unemployment rate than it expects—possibly as high as 7.5%—to curb inflation.