US Economy Remains Resilient Despite Interest Rate Hikes
Video Credit: Wibbitz Top Stories - Duration: 01:31s - Published
US Economy Remains Resilient Despite Interest Rate Hikes
US Economy, Remains Resilient Despite , Interest Rate Hikes.
Associated Press reports that while the job market
has cooled, it continues to defy predictions that
skyrocketing interest rates would trigger a recession.
In July, employers in the U.S. added
approximately 187,000 jobs, while the
unemployment rate dropped 3.5%.
AP reports that the number is still less
than the 200,000 new jobs economists
had expected to see added in July.
.
Since March of 2022,
the Federal Reserve has
raised interest rates 11 times.
.
This is a good strong report, Julia Pollak, Chief economist at the jobs
website ZipRecruiter, via Associated Press.
The worst fears that people had
of a painful downturn, a loss of jobs,
longer unemployment durations,
all those things — those
are not coming to pass, Julia Pollak, Chief economist at the jobs
website ZipRecruiter, via Associated Press.
Meanwhile, unemployment fell just
short of a half-century low as
152,000 workers entered the U.S. job market.
.
Regardless of the influx of new employees,
average hourly wages increased 0.4% from June
and a 4.4% increase from the same time last year.
AP reports that those
higher-than-expected numbers
are likely to worry the Fed.
In both May and June, the Labor Department
revised payroll figures down, reducing the number
of new jobs created by 49,000 each month.
.
In both May and June, the Labor Department
revised payroll figures down, reducing the number
of new jobs created by 49,000 each month.
.
Paul Ashworth, chief North America economist at
Capital Economics, June and July were “the two
weakest monthly gains in two-and-a-half years."
New US Home Construction , Sinks to Slowest Pace in 4 Years.
Government data released on June 20 indicates that new home construction in America dropped in May to the slowest pace since June 2020, Yahoo Finance reports. .
Housing starts dropped 5.5%,
and building permits dipped 3.8%.
Home completions also fell to the lowest amount since September 2022.
High interest rates, set by the Fed to help tame inflation, have resulted in high mortgage rates.
But recent data has suggested that inflation has started to cool, which may give the Fed the confidence it needs to lower rates.
The weakest U.S. housing starts
since the pandemic-led shutdowns
are fairly convincing evidence of
restrictive monetary policy. , Sal Guatieri, senior economist at BMO Capital Markets, via note.
While a growing population and
workforce are providing some support,
US home builders won’t become
busier until borrowing costs fall, Sal Guatieri, senior economist at BMO Capital Markets, via note.
Meanwhile, other data released on June 20 showed that first-time applications for unemployment benefits dropped last week.
However, continuing claims rose
for a seventh consecutive week
Credit: Wibbitz Top Stories Duration: 01:30Published
Mortgage Rates Continue , to Fall, Raising Hopes of the , Fed Cutting Rates.
ABC reports that borrowing costs for
home loans continued to ease this week,
with the average rate on a 30-year mortgage
falling to its lowest level since April.
According to mortgage buyer
Freddie Mac, the rate fell from
6.95% to 6.87% last week. .
That figure is still significantly higher than
what the rate was during the same time last year,
which was at an average of 6.67%. .
15-year fixed-rate mortgages
also eased, falling from
6.17% last week to 6.13%. .
During the same time last year,
the average rate was at 6.03%.
Those higher rates can add hundreds of dollars
to monthly costs for borrowers, which limits the
purchasing options of potential homebuyers.
Mortgage rates fell for
the third straight week
following signs of cooling
inflation and market
expectations of a
future Fed rate cut, Sam Khater, Freddie Mac’s chief economist, via ABC.
ABC reports that rates are influenced by a number
of factors, including the Federal Reserve's interest
rate policy and the 10-year Treasury yield.
ABC reports that rates are influenced by a number
of factors, including the Federal Reserve's interest
rate policy and the 10-year Treasury yield.
Due to yields also beginning to ease, the Federal
Reserve could start to drop its main interest rate
after hiking it up to the highest level in over 20 years.
Last week, Fed officials suggested that they would make
just one cut to their benchmark interest rate in 2024,
down from previous projections of three cuts for the year.
Credit: Wibbitz Top Stories Duration: 01:31Published
Surge of New Applications for , Unemployment Benefits , May Signal Cooling Job Market.
Last week, the number of people in the
United States filing for unemployment benefits
reached the highest level in ten months last week. .
ABC reports that the news comes as a potential
sign that the U.S. labor market may be slowing
under the burden of high interest rates. .
The week ending June 8 saw
applications for jobless benefits
rise by 13,000 to reach 242,000. .
According to Labor Department
data, that is up from 229,000 new
applications the week before.
The number also represents the highest
number of new applications since August
of 2023, while also being significantly higher
than the 225,000 new claims forecast.
ABC reports that weekly unemployment claims have
lingered at historically low levels since millions of
jobs disappeared with the COVID-19 pandemic.
ABC reports that weekly unemployment claims have
lingered at historically low levels since millions of
jobs disappeared with the COVID-19 pandemic.
Since March of 2022, the Federal Reserve has raised
benchmark rates 11 times in an attempt to reign in
inflation which has risen to a four-decade high.
While the latest data suggests that consumer
inflation cooled in May, the Federal Reserve
has decided to leave rates at a 23-year high.
According to Fed Chair Jerome Powell, officials
are waiting for more evidence that prices
are reaching their target of two percent.
ABC reports that a total of 1.82 million
Americans were collecting unemployment
benefits in the week ending June 1. .
ABC reports that a total of 1.82 million
Americans were collecting unemployment
benefits in the week ending June 1.
Credit: Wibbitz Top Stories Duration: 01:30Published
Fed Holds Steady , With Interest Rates at , 2-Decade High.
On June 12, the Federal Reserve chose to hold
interest rates at a two-decade high while it
waits to see more signs of inflation going down.
'The Guardian' reports that officials at the United States
central bank expect to make a single rate cut
in 2024, according to the latest projections.
In previous projections,
policymakers expected the Fed
to make three cuts in 2024. .
At the latest meeting, the Fed chose to
keep rates at the same place they've been
for nearly a year, between 5.25% and 5.5%.
Despite recent data suggesting that inflation
may be easing, the Fed clearly doesn't see it moving
at a pace that would lead it to start cutting rates.
In May, inflation cooled slightly across the U.S.,
according to the latest consumer price index, however
consumers remain frustrated over skyrocketing prices.
In May, inflation cooled slightly across the U.S.,
according to the latest consumer price index, however
consumers remain frustrated over skyrocketing prices.
'The Guardian' reports that price growth has
slowed significantly since surging over 9%
in 2022, its highest level in a generation.
'The Guardian' reports that price growth has
slowed significantly since surging over 9%
in 2022, its highest level in a generation.
May saw prices for air fare and fuel go
down, inflation for grocery prices remained
flat, and shelter costs continued to rise.
May saw prices for air fare and fuel go
down, inflation for grocery prices remained
flat, and shelter costs continued to rise.
Overall, prices remained unchanged on a month-to-month
basis as the Fed emphasized that it would wait for
inflation to hit its previously-stated target of 2%.
The committee does not expect
it will be appropriate to reduce
the target range until it has
gained greater confidence
that inflation is moving
sustainably toward 2%, Federal Reserve statement, via Fox News
Credit: Wibbitz Top Stories Duration: 01:31Published
European Central Bank , Cuts Interest Rates.
The action was confirmed on June 6 at
the central bank's meeting, CNBC reports. .
The European Central Bank's (ECB) key
rate will go from 4% down to 3.75%.
The ECB Governing Council issued a statement.
Based on an updated assessment of
the inflation outlook, the dynamics of
underlying inflation and the strength
of monetary policy transmission, , ECB Governing Council, via statement.
... it is now appropriate to
moderate the degree of monetary
policy restriction after nine months
of holding rates steady, ECB Governing Council, via statement.
This is the first time that interest rates
have been cut since September 2019. .
Updated macroeconomic projections indicate that 2024's "annual average headline inflation outlook" has been increased from 2.3% to 2.5%, CNBC reports.
For 2025, it was raised from 2% to 2.2%.
The projection for 2026 stayed at 1.9%.
The ECB's next meeting is in July, where another rate cut is unlikely, experts say.
The slight upgrade to the inflation forecast
was to be expected, inflation has been printing
a little bit hotter than markets were expecting,
but in terms of the timing of the next cut
I’d still be looking to September, Dean Turner, chief euro zone economist at
UBS Global Wealth Management, to CNBC.
Canada also cut interest rates on June 5, while Sweden and Switzerland cut rates earlier this year.
Canada also cut interest rates on June 5, while Sweden and Switzerland cut rates earlier this year.
Canada also cut interest rates on June 5, while Sweden and Switzerland cut rates earlier this year.
The U.S. Federal Reserve continues
to battle America's rate of inflation.
Credit: Wibbitz Top Stories Duration: 01:31Published
'Beetlejuice Beetlejuice' starring Michael Keaton, Winona Ryder, Catherine O'Hara and Jenna Ortega will kick off this year's Venice International Film Festival. This will mark the world premiere for Tim Burton's hotly-anticipated sequel to his 1988 comedy-horror hit. The film will premiere in Venice on August 28th, screening out of competition. The Warner Bros. release hits the big screen in North America on September 6th and internationally beginning September 4th.
Credit: The Hollywood Reporter Duration: 01:18Published
Cyndi Lauper , Announces Farewell Tour.
The 70-year-old singer has announced the "Girls Just Wanna Have Fun Farewell Tour," CNN reports.
Lauper will play in 23 North American cities.
The tour kicks off on Oct. 18 in Montreal.
It will end on Dec. 5 in Chicago.
Pre-sale tickets will be available on June 4.
General sale tickets will be available on June 7.
Lauper is scheduled to talk about her upcoming
tour on 'Jimmy Kimmel Live!' on June 5.
Meanwhile, a documentary about Lauper
will debut on Paramount+ on June 4.
It is titled, 'Let the Canary Sing'
and is directed by Alison Ellwood.
According to a press release, 'Let the Canary Sing' , "chronicles Lauper’s meteoric ascent to stardom
and her profound impact on generations through
her music, ever-evolving punk style, unwavering
feminism and tireless advocacy.".
The documentary takes the
audience on an engaging
exploration of a renowned and
pioneering artist who has left a
remarkable legacy with her art, Via press release
Credit: Wibbitz Top Stories Duration: 01:30Published
Kevin Mahn, Hennion & Walsh Asset Management president and CIO, joins 'Power Lunch' to discuss how interest rate hikes are impacting credit lending, the market response to..
Today, The Two Mikes spoke with Gordon Oliver from Cambridge Credit Counseling for an update on America’s economic situation. Mr. Oliver explained that the economy continues to struggle..
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