Tag Archives: Economy

Whose Inflation Is Too High?

The Mortgage Corner Declining inflation has stalled in the first quarter, which is hurting prospects for any Fed rate cuts, and causing consumers to buy less. The inflation rate is currently stuck in the 3 percent range, though much lower … Continue reading

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Q2 Economic Growth Any Better?

The Mortgage Corner The initial estimate of first quarter 2024 Gross Domestic Product (GDP) growth was less than expected (1.6%), causing financial markets to panic, even though economic growth is better than the initial estimate is reporting, I said last … Continue reading

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Retail Sales Decline Worrying

Financial FAQs The bad news might be good news, though it presages further grief for some consumers. Retail sales didn’t increase at all in April, and the Consumers Price Index showed lower inflation, with its annual rate dropping to 3.4 … Continue reading

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Why the Inflation Confusion?

Popular Economics Weekly Most pundits (and propagandists) don’t know who to blame for ‘sticky’ inflation, so they blame those who haven’t caused it—such as the current administration or the Federal Reserve. But the sudden rise in prices of the past … Continue reading

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Less Need to Worry in 2024?

Financial FAQs It’s time to catch our breath. Wars and protests can unsettle economies, but much of the economic uncertainty in 2024 is for more mundane reasons. The last few weeks have unsettled the financial markets, to say the least. … Continue reading

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What Should Fed Do–Part II?

Popular Economics Weekly Friday’s ‘official’ April US unemployment report was even more surprising than Fed Chairman Powell’s dovish remarks after the Fed’s May FOMC meeting, as if Powell might have known that April’s unemployment report would be weaker. It was, … Continue reading

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What Should the Fed Do?

Popular Economics Weekly The big surprise at Federal Reserve Chairman Powell’s last press conference was despite strong job numbers and inflation still above the Fed’s 2 percent target rate, the Fed governors are acting more dovish. Why? They don’t want … Continue reading

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Inflation Target Reached?

Financial FAQs Inflation is probably as close to the Federal Reserve’s inflation target of 2 percent as possible this year, according to its favorite inflation index, the Personal Consumption Expenditure Price Index (PCE) that is the best overall measure of … Continue reading

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Q1 GDP Growth Better Than Estimate

The Mortgage Corner The initial estimate of first quarter 2024 Gross Domestic Product (GDP) growth was less than expected, causing financial markets to panic, even though economic growth is better than the initial estimate is reporting. The lower GDP estimate … Continue reading

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Elevated Rates Endangering Economy

Financial FAQs Early predictions show first quarter economic growth picking up, but a little-known indicator of future growth, the Conference Board’s Index of Leading Economic Indicators (LEI) in March highlighted the danger that high interest rates hold for future growth. … Continue reading

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