Fed’s Powell: There’s no returning to pre-pandemic economy
Federal Reserve Chairman Jerome Powell said Tuesday that the U.S. economy has been permanently changed by the COVID pandemic and it is important that the central bank adapt to those changes.
Economy
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Americans spent less in July as COVID-19 cases surged
Economists think Americans are also shifting their spending from goods to services, things like haircuts or vacations, which are not included in Tuesday’s report. And rising prices for everything from food to washing machines might have checked spending.
U.S. factory production rebounds at fastest pace in 4 months
Overall, industrial production—which includes manufacturing, utilities and mining—posted a 0.9% increase, the best performance since a 2.8% surge in March.
Wholesale costs up 1% for second straight month
Prices at the wholesale level over the past 12 months are up a record 7.8%, the largest increase in that span of time in a series going back to 2010.
U.S. consumer prices rose in July but at slower pace
Rising inflation has emerged as the Achilles’ heel of the economic recovery, erasing much of the benefit to workers from higher pay and heightening pressure on the Federal Reserve’s policymakers under Chair Jerome Powell, who face a mandate to maintain stable prices.
For first time, average hourly pay for supermarket, restaurant workers tops $15
Wages have been rising rapidly as the economy reopens and businesses struggle to hire enough workers. Some of the biggest gains have gone to workers in some of the lowest-paying industries.
U.S. jobless claims drop to 385,000 as economy rebounds
Unemployment claims remain high by historic levels: Before the pandemic slammed the United States in March 2020, they were coming in at around 220,000 a week.
Tsunami of deferred debt is about to hit homeowners no longer protected by a foreclosure moratorium
Congress approved $10 billion in federal assistance to help homeowners pay off debt, but the program is moving so slowly that protections are expiring before states have figured out how to distribute the money.
Worker pay rises as businesses fight to fill jobs
In the year ending in June, wages and salaries jumped 3.5% for workers in the private sector, the largest increase in more than 14 years. That increase was driven by sharp rise in pay for restaurant and hotel workers of more than 6%.
U.S. economy surpasses pre-pandemic size with 6.5% second quarter growth
For all of 2021, the economy is expected to expand perhaps as much as 7%. If so, that would be the strongest calendar-year growth since 1984.
IMF forecasts 6% global growth this year as economies reopen
But the 190-country lending agency has downgraded its forecast for poorer countries, most of which are struggling to vaccinate.
U.S. jobless claims rise to 419,000 from pandemic low
Economists characterized last week’s increase as most likely a blip caused by some one-time factors and partly a result of the inevitable bumpiness in the week-to-week data.
Used-car prices slip from dizzying heights but remain high
Inventories of used cars remain tight, but a decline in customer traffic in recent weeks has prompted some dealers to trim prices.
Gain in U.S. retail sales underscores solid, steady consumer demand
Nine of 13 retail categories posted increases in June sales, including solid gains at electronics and appliance outlets, clothing stores and restaurants.
U.S. unemployment claims fall to 360,000, a new pandemic low
Last month, employers added a hefty 850,000 jobs, and hourly pay rose a solid 3.6% compared with a year ago—faster than the pre-pandemic annual pace and evidence that companies are being compelled to pay more to attract and keep workers.
Fed survey: U.S. economy strong but hindered by bottlenecks
The Federal Reserve said Wednesday that seven of its 12 regional bank districts reported strong price increases with some businesses expressing concerns that the supply chain disruptions would push prices even higher.
Fed chairman says inflation, though elevated, will likely moderate
Federal Reserve Chairman Powell reiterated his long-held view that high inflation readings over the past several months have been driven largely by temporary factors.
Wholesale inflation over past year jumps by record amount
Nearly 60% of the gain in wholesale prices in June reflected a jump in the cost of services, led by higher margins received by wholesalers and retailers.
U.S. consumer prices surged in June by the most since 2008
The pickup in inflation, which has coincided with the economy’s rapid recovery from the pandemic recession, has heightened concerns that the Federal Reserve might feel compelled to begin withdrawing its low-interest rate policies earlier than expected.
Consumer borrowing sees record one-month surge
Federal Reserve officials said the $35.3 billion seasonally adjusted increase in May was the largest one-month gain on records that go back to 1943.