Category Archives: Consumers

Please Drop Interest Rates Sooner!

Financial FAQs If I were the Fed Governors, I wouldn’t wait for inflation to drop further to begin lowering interest rates. The inflation rate has been falling steadily for more than a year and we might be in the midst of a … Continue reading

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More Jobs Than Ever!

Popular Economics Weekly This is what is called a ‘soft landing’. More jobs are being created in November’s unemployment report, though some 50,000 of the 199,000 new nonfarm payroll jobs are strikers returning to work in Hollywood productions and auto … Continue reading

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Higher Productivity Lowers Inflation

Financial FAQs Why has the Fed got it so wrong with inflation, even though the inflation rate has been falling steadily for more than a year? Paul Krugman in a recent NYTimes Op-ed said the personal consumption expenditure deflator (PCE) … Continue reading

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What Happens Next?

Popular Economics Weekly What does the future foretell? Everyone wants to know what will happen next year now that the Fed is on hold and inflation continues to decline. I believe the construction industry is telling us the economy will … Continue reading

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Shoppers Happy, Lower Inflation

Financial FAQs There are two indicators that show consumers will continue to support economic growth this year, (and hence avoid a recession), while inflation is continuing to decline. Firstly, Thanksgiving, the biggest shopping holiday, lured in more shoppers than ever. … Continue reading

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Housing Starts Up, Recession Worries Over?

Financial FAQs The best indicator of a looming recession is to watch how consumers behave. And this will be a record year for travel on the ground and in the air. So, would consumers continue travelling if they saw financial … Continue reading

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Where’s the Inflation–Part II?

Popular Economics Weekly We can also look at the behavior of wholesale prices to see if inflation has been conquered. The Producer Price Index has been at or below the Fed’s target 2 percent since May 2023. It’s the cost … Continue reading

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Where’s the Inflation?

Financial FAQs What if there’s too little inflation? That’s actually the definition of a recession. It seems unlikely at the moment and inflation is still a major upset for consumers. But it could happen if the Fed doesn’t ease up on … Continue reading

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Why Not A Return to the ‘Roaring Twenties’?

The Mortgage Corner “The Roaring Twenties was a decade of economic growth and widespread prosperity, driven by recovery from wartime devastation and deferred spending, a boom in construction, and the rapid growth of consumer goods such as automobiles and electricity … Continue reading

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Where’s the Recession-Part II?

Popular Economics Weekly We will have to wait longer for a recession. October’s Jobs report showed even the unsettled labor strikes didn’t make much of a dent in the labor market. The usual suspects—leisure activities, healthcare, and a booming construction … Continue reading

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