For the third month in a row, the consumer confidence reading shows Americans are feeling the inflation squeeze. Many Americans are worried about a potential recession as prices rise for gas, food, clothing, housing and more. Inflation is also being felt by many corporations. Walmart says Americans are buying more food and fewer big ticket items. The Federal Reserve is poised to raise interest rates again tomorrow.
Facing the smallest budget shortfall of her tenure, a $127.9 million deficit for 2023, Mayor Lori Lightfoot is expecting a $42.7 million property tax hike as she prepares to run for a second term.
- USA TODAY Opinion
Democrats' 'Inflation Reduction Act' would address climate change and prescription prices by spending even more money and growing government.
The brokerage expects India's growth to average 7% for 2022-2023 and contribute 28% and 22% to Asian and global growth, respectively. Morgan Stanley's projection comes as Asia's third-largest economy grew 9.2% in the fiscal year 2022, a sharp recovery from a 6.6% contraction in the previous year as COVID-19 lockdowns took a severe toll on its economy. "Lower corporate taxes, the production-linked incentive (PLI) scheme and India as a potential beneficiary of supply chain diversification will catalyse and sustain domestic demand, especially in investment," the economists said in a note dated Tuesday.
(Bloomberg) -- President Vladimir Putin’s invasion of Ukraine set Russia’s economy back four years in the first full quarter after the attack, putting it on track for one of the longest downturns on record.Most Read from BloombergStriking Drop in Stress Hormone Predicts Long Covid in StudyThe Fed’s Damage to the Housing Market May Last YearsGarland Seeks to Unseal Trump Warrant, Says He Approved SearchChina Has Painted Itself Into a Semiconductor CornerThe Snowballing US Rental Crisis Is Sparing
At the onset of the coronavirus pandemic, the American economy immediately fell into recession, with unemployment spiking to 14.8%, the highest since records began in 1948. In response, the U.S....
- Business Insider
Global trade is typically denominated in the US dollar, but sweeping sanctions have spurred countries still doing business with Russia to switch.
- Business Insider
The three Rs explain why oil prices have fallen from their June highs: Recession worries, Russian resilience, and retreating demand.
- Associated Press
As India’s economy grew, the hum of factories turned the sleepy, dusty village of Manesar into a booming industrial hub, cranking out everything from cars and sinks to smartphones and tablets. Scenes like this are an everyday reality for millions of Indians, the most visible signs of economic distress in a country where raging unemployment is worsening insecurity and inequality between the rich and poor. Entire families leave their homes in India’s vast rural hinterlands to camp at such bazaars, found in nearly every city.
- The New Voice of Ukraine
There is no path out of economic oblivion for Russia as long as the allied countries remain unified in maintaining and increasing sanctions pressure against Russia, five Yale University scientists said in an August 2022 study.
- Good Morning America
Inflation data released on Wednesday revealed that price increases slowed in July, easing the strain on household budgets as the Federal Reserve fights inflation with a series of borrowing cost hikes. While still elevated, price hikes waned from the near-historic pace reached in June, giving hope to policymakers and consumers that inflation has peaked. The consumer price index, or CPI, rose 8.5% year-over-year in July, a marked slowdown from 9.1% in June, according to the Bureau of Labor Statistics.
'What we are going through right now is a Fed mistake,' said Tracy Chen, a portfolio manager at Brandywine Global Investment Management.
- Good Morning America
Price hikes have battered the U.S. economy for months, straining household budgets and prompting an aggressive series of rate hikes from the Federal Reserve. In fact, Black and Latino people have been disproportionately affected by the set of goods hit hardest by inflation, in light of which goods those groups consume compared with their counterparts, according to a study released in June by the New York Federal Reserve. The latest government data shows that food prices have outpaced the overall inflation rate, rising nearly 11% year-over-year in July.
(Reuters) -Minneapolis Federal Reserve Bank President Neel Kashkari on Wednesday said he is sticking to his view that the U.S. central bank will need to raise its policy rate another 1.5 percentage points this year and more in 2023, even if that causes a recession. The Fed is "far, far away from declaring victory" on inflation, Kashkari said at the Aspen Ideas Conference, despite the "welcome" news in the consumer price index report earlier in the day that inflation may have begun to cool. Kashkari said he hasn't "seen anything that changes" the need to raise the Fed's policy rate to 3.9% by year-end and to 4.4% by the end of 2023.
- The Hill
Treasury Secretary Janet Yellen directed IRS officials not to use new funding secured for the agency in Democrats’ Inflation Reduction Act to increase audits on households making under $400,000 annually. In a Wednesday letter to IRS Commissioner Charles Rettig, Yellen reaffirmed a commitment “that audit rates will not rise relative to recent years for households making under…
An inverted U.S. Treasury yield curve almost always heralds recession, but the yawning gap between high short-term funding costs and falling long-term borrowing rates may accelerate the economic downturn it presages. Although banks are in pretty good shape, the downward-sloping curve will erode net interest margins and curb lending, while this year's rout in stocks and bonds will require them to divert more cash towards repairing torpedoed capital buffers. Banks can make money when interest rates rise but this is far easier when the yield curve slopes upward, and they borrow lower and lend higher.
The war in Ukraine has likely sent Russia's economy back to 2018 — but it's still a smaller contraction than experts expected
Russia's GDP likely fell 4.7% in the second quarter of 2022, per Bloomberg. It was the first full quarter since the invasion of Ukraine.
- Associated Press
A flagship Democratic economic bill perched on the edge of House passage Friday, placing President Joe Biden on the brink of a back-from-the-dead triumph on his climate, health and tax goals that could energize his party ahead of November’s elections. Democrats were poised to muscle the measure through the narrowly divided House Friday over solid Republican opposition. The package is but a shadow of Biden's initial vision and was produced only after a year of often bitter infighting between party leaders, progressives and centrists led by Sen. Joe Manchin, D-W.Va., empowered by that chamber's even split.
- Milwaukee Journal Sentinel
Downtown Milwaukee's convention center expansion will cost more than its $420 million budgeted price — forcing more public borrowing
The Wisconsin Center District must borrow more money to cover the higher costs. Details should be available at the district board's Aug. 19 meeting.
If you want to know what the consumer price index will do in the months ahead, watch shelter prices.
Even though inflation might have just peaked, here are 4 reasons you still won’t be able to afford stuff, Goldman says
Jan Hatzius, chief economist for Goldman Sachs, sees "hope that a long-elusive disinflationary impulse from core goods prices might finally arrive." Dream on, he says.