America’s jobs boom rolls on, fuelling fears of sustained inflation

(FILES) In this file photo taken on June 03, 2022, people walk past a "now hiring" sign posted outside of a restaurant in Arlington, Virginia. - The US economy continued to add jobs in June at a rapid pace, while the unemployment rate held steady at 3.6 percent and wages rose, according to government data released on July 8, 2022. There were 372,000 new positions added in the month, far more than economists expected, the Labor Deparment reported. (Photo by OLIVIER DOULIERY / AFP) (Photo by OLIVIER DOULIERY/AFP via Getty Images)

It would normally be cause for unalloyed celebration. According to figures released on August 5th, America’s unemployment rate in July fell to 3.5%, matching a half-century low hit just before covid-19. Moreover, with nearly 530,000 jobs created last month—more than twice as many as expected—the economy has now recovered all of the jobs lost during … Read more

Big US job gains give Fed ‘a lot more work to do’ on taming inflation

The Federal Reserve will face more urgency in its fight to cool down the US economy with steep interest rate increases after the latest batch of labour market data showed an unexpected acceleration in jobs gains and strong wage growth. The figures released on Friday eased concerns that the American economy was sharply slowing down … Read more

Danger ahead: The U.S. economy has yet to face its biggest recession challenge

A person removes the nozel from a pump at a gas station on July 29, 2022 in Arlington, Virginia. Olivier Douliery | AFP | Getty Images You’d be hard-pressed now to find a recession in the rearview mirror. What’s down the road, though, is another story. There is no historical precedent to indicate that an … Read more

Workers in these two industries are the only ones coming out ahead right now | CNN Business

CNN  —  At first glance, it looks like many Americans got big pay raises since the Covid-19 pandemic started. But in reality, only workers in two industries – leisure and hospitality and retail trade – are actually coming out ahead, once inflation is taken into account. Overall, wages and salaries for private industry workers rose … Read more

Gasoline Prices Could Fall to $2.99 Next Week

Crude oil prices declined on August 4 to their lowest prices since before Ukraine was invaded by Russia as the futures market indicated a possible recession that could dampen demand from consumers. The U.S. oil benchmark WTI fell below $90 a barrel for the first time since the invasion began in February to $88 while … Read more

Friday’s job report will likely show slower growth. That’s what the Fed wants | CNN Business

Minneapolis CNN Business  —  When the latest jobs report comes out on Friday, it very well could show the smallest number of positions added in the past 18 months. The US economy is expected to have gained around 250,000 jobs last month, according to Refinitiv. While that’s far from the 456,000 average monthly gains so … Read more

Fed’s Mary Daly says she doesn’t feel inflation because ‘I have enough,’ adds ‘that’s not the case’ for others

Check out what’s clicking on The president of the San Francisco Federal Reserve Bank is doing fine amid a period of high inflation, but she acknowledged that others are not so fortunate.  President Mary Daly gave an interview to Reuters on Wednesday exploring the ongoing inflation spike and its effect on low-income households.  Interviewer … Read more

Mortgage rates drop below 5% for first time since April | CNN Business

Mortgage rates dropped for the second week in a row, falling below 5% for the first time since mid-April. The 30-year fixed-rate mortgage averaged 4.99% in the week ending August 4, down from 5.3% the week before, according to Freddie Mac. But that is still significantly higher than this time last year when it was … Read more

Fed officials beat inflation drum; 50-basis-point rate hike ‘reasonable’ next month

Aug 3 (Reuters) – Federal Reserve officials voiced their determination again on Wednesday to rein in high inflation, although one noted a half-percentage-point hike in the U.S. central bank’s key interest rate next month might be enough to march toward that goal. “I start from the idea that 50 (basis points) would be a reasonable … Read more