Americans’ economic outlook brightens as inflation slows and wages outpace prices
11 months ago

Americans’ economic outlook brightens as inflation slows and wages outpace prices

LA Times  

A customer checks prices while shopping at a grocery store last week in Wheeling, Ill. A typical basket of groceries now costs 20% more than in February 2021, just before inflation began to take off. After an extended period of gloom, Americans are starting to feel better about inflation and the economy — a trend that could sustain consumer spending, fuel economic growth and potentially affect President Biden’s political fortunes. A survey by the Federal Reserve Bank of New York found that Americans’ inflation expectations have reached their lowest point in nearly three years. Even with the steady slowdown in inflation, prices are still nearly 17% higher than they were three years ago, a source of discontent for many Americans. “As the election goes on,” Cummings said, “and it becomes more clear that the 2024 race will be Trump versus Biden, Republicans might dial up their pessimism more than Democratic sentiment is increasing, pulling sentiment back down, regardless of economic fundamentals.” The University of Michigan survey found that consumer sentiment among Democrats jumped a sharp 11.8% in January, the second-largest such increase on record.

Economy Inflation Prices Price Biden Fed Higher Americans Marshall Economist Sentiment Consumer Sentiment  economic  inflation  outlook  sentiment  prices  price  economy  higher  americans  economist  brightens  slows  wages  nearly  costs  outpace

History of this topic

US inflation may have picked up in October after months of easing
Trending News
1 month, 1 week ago

US inflation may have picked up in October after months of easing

Associated Press  

WASHINGTON — Annual inflation may have risen in October for the first time in seven months, a sign that price increases might be leveling off after steadily cooling for more than two years. From September to October, core prices are expected to have risen 0.3% for a third straight month — a pace that, if sustained, would exceed the Federal …

Fed up with high prices? Here's where things stand with inflation
1 month, 1 week ago

Fed up with high prices? Here's where things stand with inflation

NPR  

Fed up with high prices? Here's where things stand with inflation toggle caption Justin Sullivan/Getty Images By the numbers, inflation in America continues in the same direction: Easing largely — but still sticky. "We both make decent wages, but with the way that inflation has increased, it's like our dollar just doesn't go as far," says Spangler, who helps manage …

Soaring inflation helped lead Trump to victory – here’s why some of his policies might drive prices higher again
1 month, 1 week ago

Soaring inflation helped lead Trump to victory – here’s why some of his policies might drive prices higher again

New Indian Express  

President-elect Donald Trump owes his political comeback in large part to voters’ concerns over the soaring price of everything from gasoline and housing to coffee and bagels. But in an ironic twist, some of Trump’s own policies – which he heavily promoted on the campaign trail – could send inflation soaring once more if enacted. Stagnant real wages Exit poll …

Column: American economists and consumers got inflation wrong during its recent surge. They still do
2 months, 3 weeks ago

Column: American economists and consumers got inflation wrong during its recent surge. They still do

LA Times  

Sen. JD Vance tried to blame the $4 price of a dozen eggs on Kamala Harris in this campaign video. The “strong policy response” Powell referred to was the Fed’s raising of short-term interest rates 11 times, a total of 5.25 percentage points, from March 2022 through July 2023. In November 2021, however, Powell told Congress that it was “probably …

US inflation reaches a 3-year low as Federal Reserve prepares to cut interest rates
3 months, 1 week ago

US inflation reaches a 3-year low as Federal Reserve prepares to cut interest rates

Politico  

For months, cooling inflation has provided gradual relief to America’s consumers, who were stung by the price surges that erupted three years ago, particularly for food, gas, rent and other necessities. A key reason for last month’s drop in overall inflation was the third decline in gas prices in the past four months: Average gas prices fell 0.6% from July …

Paychecks grew more slowly this spring, a sign inflation may keep cooling
4 months, 3 weeks ago

Paychecks grew more slowly this spring, a sign inflation may keep cooling

Associated Press  

WASHINGTON — Pay and benefits for America’s workers grew more slowly in the April-June quarter than in the first three months of the year, a trend that could keep price pressures in check and encourage the inflation-fighters at the Federal Reserve. Compensation as measured by the government’s Employment Cost Index rose 0.9% in the second quarter, down from a 1.2% …

US inflation cooled in May in a sign that price pressures may be easing
6 months, 1 week ago

US inflation cooled in May in a sign that price pressures may be easing

Associated Press  

WASHINGTON — Inflation in the United States eased in May for a second straight month, a hopeful sign that an acceleration of prices that occurred early this year may have passed. Consumer prices excluding volatile food and energy costs — the closely watched “core” index — rose 0.2% from April to May, the government said Wednesday. Fed officials, who will …

US inflation eased last month in the first slowdown of 2024
7 months, 1 week ago

US inflation eased last month in the first slowdown of 2024

Associated Press  

WASHINGTON — Led by lower food and auto prices, inflation in the United States cooled slightly last month after three elevated readings, likely offering a tentative sigh of relief for officials at the Federal Reserve as well as President Joe Biden’s re-election team. Instead, he stressed that the Fed’s policymakers need “greater confidence” that inflation is falling to their 2% …

US employers scaled back hiring in April. How that could let the Fed cut interest rates
7 months, 3 weeks ago

US employers scaled back hiring in April. How that could let the Fed cut interest rates

Associated Press  

WASHINGTON — The nation’s employers pulled back on their hiring in April but still added a decent 175,000 jobs in a sign that persistently high interest rates may be starting to slow the robust U.S. job market. Even with the April hiring slowdown, last month’s job growth amounted to a solid increase, though it was the lowest monthly gain since …

American consumers are pushing back against high inflation — and they are winning
9 months, 4 weeks ago

American consumers are pushing back against high inflation — and they are winning

The Hindu  

Inflation has changed the way many Americans shop. In a video released on Super Bowl Sunday, Mr. Biden denounced shrinkflation as a “rip-off.” Consumer pushback against high prices suggests to many economists that inflation should further ease. “That was the fear — that everybody would tolerate higher prices,” said Gregory Daco, chief economist at EY, who notes that it hasn't …

US consumer inflation falls to 3.1pc in January, but less than expected
10 months, 1 week ago

US consumer inflation falls to 3.1pc in January, but less than expected

Hindustan Times  

US consumer inflation cooled in January but at a slower rate than expected, resisting President Joe Biden's efforts to soothe families' cost of living concerns in an election year. U.S. President Joe Biden The closely watched Consumer Price Index rose 3.1 percent from a year ago last month, down from 3.4 percent in December, the Department of Labor said on …

Americans’ economic outlook brightens as inflation slows and wages outpace prices
11 months ago

Americans’ economic outlook brightens as inflation slows and wages outpace prices

Associated Press  

WASHINGTON — After an extended period of gloom, Americans are starting to feel better about inflation and the economy — a trend that could sustain consumer spending, fuel economic growth and potentially affect President Joe Biden’s political fortunes. A survey by the Federal Reserve Bank of New York found that Americans’ inflation expectations have reached their lowest point in nearly …

Americans' economic outlook brightens as inflation slows and wages outpace prices
11 months ago

Americans' economic outlook brightens as inflation slows and wages outpace prices

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Federal Reserve On Cusp Of What Some Thought Impossible: Defeating Inflation Without Steep Recession
1 year ago

Federal Reserve On Cusp Of What Some Thought Impossible: Defeating Inflation Without Steep Recession

Huff Post  

In this photo made with a slow shutter speed, Federal Reserve Board Chair Jerome Powell speaks during a news conference about the Federal Reserve's monetary policy at the Federal Reserve, Wednesday, Dec. 13, 2023, in Washington. “I think it’s really good to see the progress that we’re making,” Chair Jerome Powell said at a news conference Wednesday after the Fed's …

What’s pushing inflation down? More goods, workers and housing
1 year, 1 month ago

What’s pushing inflation down? More goods, workers and housing

Associated Press  

WASHINGTON — Long past its painful peak, inflation in the United States may be heading steadily back toward its pre-pandemic levels, without the need for further interest rate hikes by the Federal Reserve. Overall inflation didn’t rise from September to October, the first time that consumer prices collectively haven’t budged from one month to another in more than a year. …

Americans continue to feel better about inflation and the economy
1 year, 4 months ago

Americans continue to feel better about inflation and the economy

CNN  

Washington, DC CNN — US consumers have been feeling a whole lot better this summer as inflation has continued to slow. Consumer sentiment tracked by the University of Michigan rose 11% in July from the prior month, reaching its highest level since October 2021, according to a final reading of the month’s data. “Overall, the sharp rise in sentiment was …

US adds a healthy 236,000 jobs despite Fed’s rate hikes
1 year, 8 months ago

US adds a healthy 236,000 jobs despite Fed’s rate hikes

Associated Press  

WASHINGTON — America’s employers added a solid 236,000 jobs in March, suggesting that the economy remains on solid footing despite the nine interest rate hikes the Federal Reserve has imposed over the past year in its drive to tame inflation. We do see that the job market is cooling, but it’s still resilient.’’ In another sign that might reassure the …

US inflation slows to 6.4%, but price pressures re-emerge
1 year, 10 months ago

US inflation slows to 6.4%, but price pressures re-emerge

Associated Press  

WASHINGTON — The pace of consumer price increases eased again in January compared with a year earlier, the latest sign that the high inflation that has gripped Americans for nearly two years is slowly easing. At the same time, Tuesday’s consumer price report from the government showed that inflationary pressures in the U.S. economy remain stubborn and are likely to …

An unexpected job surge confounds the Fed’s economic models
1 year, 10 months ago

An unexpected job surge confounds the Fed’s economic models

Associated Press  

WASHINGTON — Does the Federal Reserve have it wrong? “Like $20 bills on the sidewalk and free lunches, falling inflation paired with falling unemployment is the stuff of economics fiction.” In economic models used by the Fed and most mainstream economists, a job market with strong hiring and a low unemployment rate typically fuels higher inflation. Chair Jerome Powell has …

Stock market surges after inflation report shows the pain of high prices may ease
2 years, 1 month ago

Stock market surges after inflation report shows the pain of high prices may ease

NPR  

Stock market surges after inflation report shows the pain of high prices may ease Enlarge this image toggle caption FREDERIC J. BROWN/AFP via Getty Images FREDERIC J. BROWN/AFP via Getty Images Stocks surged in their biggest rally in two years on Thursday, after a better-than-expected inflation report showed that the galloping price increases that consumers have endured all year are …

Watch: Chart-armed Katie Porter makes the case that corporate greed is the primary cause of inflation
2 years, 2 months ago

Watch: Chart-armed Katie Porter makes the case that corporate greed is the primary cause of inflation

Raw Story  

During a House of Representatives hearing on Wednesday, United States Congresswoman Katie Porter grilled Mike Konczal, the director of Macroeconomic Analysis at the Roosevelt Institute, over the primary cause of inflation in the post-COVID-19 economy. Equipped with one of her easy-to-read, data-filled posters, Porter got Konczal to admit that surging corporate profits are forcing American consumers to pay significantly more …

Driven by consumers, US inflation grows more persistent
2 years, 3 months ago

Driven by consumers, US inflation grows more persistent

Associated Press  

WASHINGTON — U.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession. Instead, inflation has now sp On Tuesday, the government said inflation ticked up 0.1% from July to August and 8.3% from a year …

Can we afford real wage cuts and soaring rate hikes as households struggle to balance budgets?
2 years, 4 months ago

Can we afford real wage cuts and soaring rate hikes as households struggle to balance budgets?

ABC  

You'd think we'd get better at predicting the future. Only 14 per cent of private sector workers received a pay rise in the June quarter. Those private sector workers, who did get a pay rise in the June quarter scored — on average — a 3.8 per cent pay jump which sounds quite tidy. Sluggish wage growth — particularly when …

Lower prices offer Americans slight reprieve from inflation
2 years, 4 months ago

Lower prices offer Americans slight reprieve from inflation

Associated Press  

WASHINGTON — Falling prices for gas, airline tickets and clothes gave Americans a little bit of relief last month, though overall inflation is still running at close to its highest level in four decades. Last month’s declines in travel-related prices helped lower core inflation, a measure that excludes the volatile food and energy categories and provides a clearer picture of …

US economy sending mixed signals: Here’s what it all means
54 years, 11 months ago

US economy sending mixed signals: Here’s what it all means

Associated Press  

WASHINGTON — The U.S. economy is caught in an awkward, painful place. Here’s a look at the economic vital signs that are sending frustratingly mixed signals to policymakers, businesses and forecasters: ___ THE OVERALL ECONOMY As measured by the nation’s gross domestic product — the broadest gauge of output — the economy has looked positively sickly so far this year. …

US economy sending mixed signals: Here’s what it all means
2 years, 4 months ago

US economy sending mixed signals: Here’s what it all means

Associated Press  

WASHINGTON — The U.S. economy is caught in an awkward, painful place. Here’s a look at the economic vital signs that are sending frustratingly mixed signals to policymakers, businesses and forecasters: ___ THE OVERALL ECONOMY As measured by the nation’s gross domestic product — the broadest gauge of output — the economy has looked positively sickly so far this year. …

‘Uncharted territory’: Five key takeaways on US inflation
2 years, 4 months ago

‘Uncharted territory’: Five key takeaways on US inflation

Al Jazeera  

What consumers feeling the pain of rising food and fuel prices need to know. “The size of the shocks that have buffeted the economy and the speed and suddenness with which things have changed has put us in a place where it’s very challenging from a monetary policy standpoint.” Following its meeting next week, the Fed is expected to raise …

US inflation surges again in June, raising risks for economy
2 years, 5 months ago

US inflation surges again in June, raising risks for economy

Associated Press  

WASHINGTON — U.S. inflation surged to a new four-decade high in June because of rising prices for gas, food and rent, squeezing household budgets and pressuring the Federal Reserve to raise interest rates aggressively -- trends that raise the risk of a recession. The government’s consumer price index soared 9.1% over the past year, the biggest yearly increase since 1981, …

EXPLAINER: Why US inflation is so high, and when it may ease
2 years, 5 months ago

EXPLAINER: Why US inflation is so high, and when it may ease

Associated Press  

WASHINGTON — Inflation’s relentless surge didn’t merely persist in June. Even if you toss out food and energy prices — which are notoriously volatile and have driven much of the price spike — so-called core inflation soared 5.9% over the past year. The inflation of the 1970s and early 1980s peaked at 14.8% in March 1980 before the Fed exorcized …

Nine in 10 people hit by rising living costs as fuel, food and energy prices surge
2 years, 6 months ago

Nine in 10 people hit by rising living costs as fuel, food and energy prices surge

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Some 45 per cent of …

US inflation at new 40-year high as price increases spread
2 years, 6 months ago

US inflation at new 40-year high as price increases spread

Associated Press  

WASHINGTON — The prices of gas, food and most other goods and services jumped in May, raising inflation to a new four-decade high and giving American households no respite from rising costs. Consumer prices surged 8.6% last month from a year earlier, faster than April’s year-over-year increase of 8.3%, the Labor Department said Friday. Friday’s report underscored fears that inflation …

U.S. inflation hit a new 40-year high last month of 8.6%
2 years, 6 months ago

U.S. inflation hit a new 40-year high last month of 8.6%

The Hindu  

The costs of gas, food, and other necessities jumped in May, raising inflation to a new four-decade high and giving American households no respite from rising costs. Consumer prices surged 8.6% last month from 12 months earlier, faster than April’s year-over-year surge of 8.3%, the Labour Department said Friday. America’s rampant inflation is imposing severe pressures on families, forcing them …

US inflation hit a new 40-year high in May of 8.6 percent
2 years, 6 months ago

US inflation hit a new 40-year high in May of 8.6 percent

Al Jazeera  

President Joe Biden will talk about inflation and his administration’s efforts to lower prices on Friday in Los Angeles. The costs of petrol, food and other necessities jumped in May, raising inflation in the United States to a new four-decade high and giving American households no respite from rising costs. Consumer prices surged 8.6 percent last month from 12 months …

EXPLAINER: Why US inflation is so high, and when it may ease
2 years, 8 months ago

EXPLAINER: Why US inflation is so high, and when it may ease

Associated Press  

WASHINGTON — Another month, another four-decade high for inflation. Back in December 2020, the Fed’s policymakers had forecast that consumer inflation would stay below their 2% annual target and end 2021 at around 1.8%. For months, Fed Chair Jerome Powell and some others characterized higher consumer prices as merely “transitory” — the result, mainly, of shipping delays and temporary shortages …

How soaring inflation forces stark choices
2 years, 8 months ago

How soaring inflation forces stark choices

NPR  

How soaring inflation forces stark choices Enlarge this image toggle caption Stefani Reynolds/AFP via Getty Images Stefani Reynolds/AFP via Getty Images From rising rent to higher heating bills, surging inflation impacts everybody, but it poses a particular hardship for people with little extra money to spare. Enlarge this image toggle caption Brandon Bell/Getty Images Brandon Bell/Getty Images From groceries to …

‘People are unhappy’: Fed official warns on high inflation
2 years, 10 months ago

‘People are unhappy’: Fed official warns on high inflation

CNN  

New York CNN Business — High inflation is making Americans unhappy, and the Federal Reserve must step up its campaign to get prices back under control, a top Fed official said Monday. “This inflation we’re seeing is very bad for low and moderate-income households,” St. Louis Federal Reserve President James Bullard told CNBC. However, I think we can do it …

US inflation jumped 7.5% in the past year, a 40-year high
2 years, 10 months ago

US inflation jumped 7.5% in the past year, a 40-year high

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation soared over the past …

US Federal Reserve plans interest-rate hikes from March to cool inflation
2 years, 10 months ago

US Federal Reserve plans interest-rate hikes from March to cool inflation

Firstpost  

The Fed’s rate hikes will make it more expensive, over time, to borrow for a home, car or business Washington: The Federal Reserve signaled on 26 January, 2022, that it will begin a series of interest-rate hikes in March, reversing pandemic-era policies that have fueled hiring and growth — and stock market gains — but also stubbornly high inflation. “The …

EXPLAINER: Why US inflation is so high, and when it may ease
2 years, 11 months ago

EXPLAINER: Why US inflation is so high, and when it may ease

Associated Press  

WASHINGTON — At first, it didn’t even register as a threat. “Prices are increasing broadly throughout the economy, and the Federal Reserve has been caught off-guard by the extent of inflation,’' said Gus Faucher, chief economist at PNC Financial. Barely more than a year ago, the Fed had forecast that consumer prices would end 2021 only about 1.8% higher than …

EXPLAINER: Why US inflation is so high, and when it may ease
3 years ago

EXPLAINER: Why US inflation is so high, and when it may ease

Associated Press  

WASHINGTON — Inflation is starting to look like that unexpected — and unwanted — houseguest who just won’t leave. Economists at Wells Fargo have joked grimly that the Labor Department’s CPI — the Consumer Price Index — should stand for “Consumer Pain Index.’’ Unfortunately for consumers, especially lower-wage households, it’s all coinciding with their higher spending needs right before the …

AP-NORC Poll: Income is up, but Americans focus on inflation
3 years ago

AP-NORC Poll: Income is up, but Americans focus on inflation

Associated Press  

WASHINGTON — Americans’ overall income has accelerated since the pandemic, but so has inflation — and a new poll finds that far more people are noticing the higher prices than the pay gains. The findings in the AP-NORC poll underscore the financial pressures that this year’s spike in inflation has imposed on many Americans’ finances. A likely factor in Americans’ …

US economists see higher wages feeding inflation for 3 years
3 years ago

US economists see higher wages feeding inflation for 3 years

Al Jazeera  

A new survey shows nearly three-quarters of US economists don’t see inflation falling to the Fed’s target 2-percent rate until the second half of 2023 or later. Nearly three quarters – 71 percent – of the 48 economists surveyed see the Federal Reserve’s preferred inflation gauge – Personal Consumption Expenditures minus food and energy – not falling to or below …

EXPLAINER: Why US inflation is so high, and when it may ease
3 years, 1 month ago

EXPLAINER: Why US inflation is so high, and when it may ease

Associated Press  

WASHINGTON — Inflation is starting to look like that unexpected — and unwanted — houseguest who just won’t leave. But they didn’t do nearly as much stimulus.’’ In a statement Wednesday, Biden acknowledged that “inflation hurts Americans’ pocketbooks, and reversing this trend is a top priority for me.’’ But he said his $1 trillion infrastructure package, including spending on roads, …

Joe Biden’s Biggest Economic Problem? Inflation Is Rising Faster Than Wages.
3 years, 1 month ago

Joe Biden’s Biggest Economic Problem? Inflation Is Rising Faster Than Wages.

Slate  

If you ask most Americans about the job market right now, they’ll tell you it’s fantastic. Unsurprisingly, in a poll last month, two-thirds of Americans told Reuters and Ipsos that “inflation is a very big concern to me,” while the share rating it as the most important issue in the country has started to tick up in Gallup’s survey. For …

US consumers expect inflation and their finances to worsen
3 years, 1 month ago

US consumers expect inflation and their finances to worsen

Al Jazeera  

The latest monthly survey from the NY Fed showed Americans’ inflation expectations for the coming year have hit a new all-time high. That cycle was on display on Monday in the Federal Reserve Bank of New York’s latest monthly Survey of Consumer Expectations that showed Americans’ median inflation expectations for the coming year have hit an all-time high, while their …

Americans sour on economy amid inflation woes: AP-NORC Poll
3 years, 1 month ago

Americans sour on economy amid inflation woes: AP-NORC Poll

Associated Press  

SAN FRANCISCO — Americans’ opinions on the U.S. economy have soured noticeably in the past month, a new poll finds, with nearly half expecting economic conditions to worsen in the next year. “It’s not quite as bad as it was back then but I feel like any day we could go off the rails.” AP-NORC poll Roughly half of Americans …

Inflation: Everything is getting more expensive. Is it time to worry?
3 years, 5 months ago

Inflation: Everything is getting more expensive. Is it time to worry?

CNN  

A version of this story appeared in CNN’s What Matters newsletter. Writing about inflation, CNN’s Chris Isidore explained the complicated situation that has led to skyrocketing car prices: Car prices are being driven up by strong consumer demand for cars, along with a limited supply due to a shortage of computer chips needed to build the cars. The Federal Reserve …

Discover Related