Tag Archives: consumer spending

Fed Stays in Accommodative Mode

Popular Economics Weekly It looks like Janet Yellen’s Fed will continue to keep interest rates low this year, based on the latest FOMC press release. This is great news for the housing market, in particular, but not necessarily for consumers … Continue reading

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Record Low Rates Spur Consumer Debt, But Not Spending

The Mortgage Corner Consumer credit rose a very large $17.2 billion in February with January revised higher to $14.9 billion, says the Federal Reserve. Nonrevolving credit, which are gains for vehicle financing and student loans, rose $14.2 billion and revolving … Continue reading

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Why Is the Fed Waiting For Inflation?

Popular Economics Weekly The Federal Reserve should stick with a “wait-and-see monetary response” absent more evidence of sustainable inflation gripping the U.S. economy, Chicago Fed President Charles Evans said Tuesday. That seems to be Fed Chairwoman Yellen’s response to current … Continue reading

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We Need More Productive Investment

Financial FAQs Consumers’ financial health has substantially improved in 2015, according to the Fed’s 2015 Q4 Flow of Funds report, plus, their real wages are rising because of lower inflation. And since consumer income drives aggregate demand—the overall demand for … Continue reading

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Job Market Grows Stronger

Popular Economics Weekly Americans are going back to work, though mostly in lower paying jobs at the moment. That’s why those states and cities raising their minimum wage rate are so important for growth. The U.S. added 242,000 new jobs … Continue reading

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Higher GDP, Consumer Spending Will Boost 2016 Growth

Financial FAQs Q4 GDP growth was just revised upward to 1.0 percent, from the 0.7 percent first estimate.  This, January’s personal income figures and durable goods orders show consumers and even parts of the manufacturing sector are still expanding, which … Continue reading

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Why Are Mortgage Rates At Historical Lows?

The Mortgage Corner Mortgage rates continued to tumble over the past week as investors fled to the safety of government bonds, pushing Treasury yields down, mortgage provider Freddie Mac said Thursday. This is no surprise given the geopolitical uncertainties buffeting … Continue reading

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Why Slower Fourth Quarter Growth?

Popular Economics Weekly Gross domestic product — the value of everything a nation produces — expanded at a 0.7 percent annual rate from October to December. That’s a big markdown from 2 percent growth in the fall and 3.9 percent … Continue reading

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What Happens in 2016?

Popular Economics Weekly Even with interest rates rising, we see 2.5 percent plus GDP growth in 2016, because of strong employment and consumer spending. An early sign of this this trend is the Conference Board’s Index of Leading Economic Indicators … Continue reading

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When Is Faster Growth Coming?

Popular Economics Weekly Where is the promised growth, with almost full employment? GDP growth was revised up from 1.5 to 2.1 percent Q2 to Q3, and is up 2.2 percent annually? When, if ever, will it return to the historical … Continue reading

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