U.S. budget deficit jumps to record $1.7 trillion
The deficit has been driven higher by trillions of dollars in support Congress has passed in successive economic rescue packages since the pandemic struck in early March 2020.
Economy
Articles
Fed’s Powell sees U.S. boom ahead, with COVID still a risk
Federal Reserve Chairman Jerome Powell said that he doesn’t expect to raise the Fed’s benchmark interest rate, currently pegged at nearly zero, this year.
Fed’s Powell: U.S. nearing full reopening to ‘different economy’
Federal Reserve Chair Jerome Powell said many Americans who are out of work will struggle to find new jobs because some industries will likely be smaller than they were before the pandemic. In other cases, employers are seeking to use technology instead of workers.
U.S. jobless claims rise to 744K as layoffs continue
If you include supplemental federal programs that were established last year to help the unemployed endure the health crisis, a total of 18.2 million were receiving some form of jobless aid the week of March 20.
IMF upgrades forecast for 2021 global growth to record 6%
The rollout of COVID-19 vaccines and vast sums of government aid will accelerate global economic growth to a record high this year in a powerful rebound from the pandemic recession, the International Monetary Fund says in its latest forecast.
Survey: U.S. services surged to record high in March
The Institute for Supply Management, an association of purchasing managers, reported Monday that its non-manufacturing index rose to an all-time high 63.7 last month from 55.3 in February. The old record of 60.9 was set in October 2018.
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.
Anticipation building for boom in U.S. hiring this year
After a year of epic job losses, waves of coronavirus infections, and small business closures, numerous trends are brightening the outlook.
Orders for manufactured goods tumbled 1.1% in February
The size of the drop surprised economists, although it is likely that there was significant disruption from severe winter storms that hit much of the country last month, on top of ongoing supply-chain problems.
Fed expects to keep its key rate near zero through 2023
The Federal Reserve foresees the economy accelerating quickly this year yet still expects to keep its benchmark interest rate pinned near zero through 2023, despite concerns in financial markets about potentially higher inflation.
February retail sales fall 3% after soaring the month before
The decline from the previous month came after retail sales jumped 7.6% in January as people spent $600 stimulus checks sent at the end of last year.
Spiking energy leads wholesale prices up 0.5% in February
Over the past year, wholesale prices are up 2.8%, the largest 12-month gain at the wholesale level in more than two years.
Consumer prices increase 0.4%, but core prices moderate
Consumer prices are up 1.7% over the past year, a still moderate performance for inflation, which is running below the Federal Reserve’s 2% target for price increases.
Survey: Many Americans still feeling financial impact of pandemic
A new poll finds COVID-19 has been devastating for some Americans, while leaving others virtually unscathed or even in better shape, at least when it comes to their finances.
Yellen says women face obstacles when pursuing economics careers
Janet Yellen, the first woman to head the Federal Reserve and the U.S. Treasury Department, said “there is a cultural problem in the profession, and we need to change the culture.”
IBJ Podcast: Three women explain how the pandemic impacted their jobs and their lives
Kelly Tingle kept her job in internal communications at Cummins Inc. but had to adjust to working at home. Lisette Woloszyk lost her job at the JW Marriott but has since found a new one. Andrea Haydon started her own design firm after being laid off from Ratio Design. They talk with host Mason King about their anxieties, fears and hopes about the future.
U.S. consumers eased off credit card borrowing in January
Consumer borrowing is closely watched for indications about Americans’ willingness to take on more debt to finance their spending, which accounts for two-thirds of U.S. economic activity.
U.S. adds strong 379,000 jobs in hopeful sign for economy
The pickup in hiring lowered the unemployment rate from 6.3% to 6.2%, the Labor Department said Friday in its monthly jobs report. That is down dramatically from the 14.8% jobless rate of April of last year, just after the virus erupted in the United States.
U.S. job growth likely rose in February in rebound from slump
Economists have forecast that job growth reached 175,000 last month, according to data provider FactSet. That would mark a sharp improvement over an average of just 29,000 jobs a month from November through January.
Powell says higher inflation temporary, Fed will be ‘patient’
Federal Reserve Chair Jerome Powell suggested Thursday that inflation will pick up in the coming months but the rise would likely prove temporary and not enough for the Fed to alter its record-low interest rate policies.