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Trump has put the iPhones in a difficult spot
In 2018, US President Donald Trump’s tariffs on steel and aluminium from China ended up being passed onto American consumers in the form of higher prices,Economists who studied Trump’s tariffs in 2018 estimated. The formula depends on the assumption of how much tariffs will raise prices. The higher the trade deficit, the higher tariffs should…
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Americans feel lousy about the economy because of tariffs
A CBS News poll has found that a majority of Americans think US President Donald Trump is focusing too much attention on tariffs and not enough on lowering prices. Although inflation has fallen since peaking in 2022, consumers are likely to pay even more as a result of the new tariffs. Anderson Economic Group said…
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The bond market is worried about the spending plans of the Trump administration
US Federal Reserve Governor Chris Waller said there was “nothing” in the data or forecasts suggesting the labour market would weaken over the coming months. “I’ve seen nothing in the data or forecasts that suggests the labor market will dramatically weaken over coming months,” Waller added. The Fed has already cut its benchmark rate by…
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Congestion pricing shows the future of the Democratic Party
Drivers of most passenger cars in New York will be charged $9 (nearly 7,500) for entering the congestion zone at peak hours, and $2.25 (around 16,000) at other times. The toll program, long in the works, was halted by Governor Kathy Hochul in June before an abrupt reversal cleared the way for it to start…
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3 economists were awarded the prize for their work on wealth and poverty
Daron Acemoglu, who won the Nobel Prize for Economics on Tuesday, said, “Rather than asking whether colonialism is bad or bad, we note that different colonial strategies have led to different institutional patterns that have persisted over time.” In their book ‘Why Nations Fail’, Daron and James Robinson argued that it was all because of…
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3 economists are recipients of the Noble Prize for their study of wealth and poverty
Three researchers have won the 2024 Sveriges RiksBank Prize in Economic Sciences in Memory of Alfred Nobel for their research on the impact of European colonization on various countries’ economies. The three researchers are Diane Coyle from University of Cambridge, UK, Kate Pickett from University of York in the UK and Turkish economist Recep Tayyip…
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It was a difficult call to cut the Fed rate
The US Federal Reserve has cut its benchmark interest rate by one-quarter of a percentage point to 0.25%, marking the first rate cut since 2020. The reduction in rates comes as the US economy has been slowing amid COVID-19 pandemic, which has caused the jobless rate to rise to 4.5%. The US economy is expected…
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There is a project that uses artificial intelligence and submission information
The Economist has released a map of global elections using generative artificial intelligence and machine learning. It shows the number of times each country has used generative AI in its elections on the map. The map will be constantly updated and each country will see how many times it has used generative AI in its…
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In this boomerang county, voters are nostalgic for the Trump economy
US President Joe Biden’s supporters in Pennsylvania’s Northampton county say they are nostalgic for Donald Trump’s economy, as the S&P 500 index rose 26% in his three years in office. “I think it’s hard because people don’t like things toCost more than they did before,” said Republican Greg Poff. According to a poll, Trump gave…
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Wages, employment and inflation are all getting headaches for the Fed
US Federal Reserve Chairman Jerome Powell has said the central bank can afford to be patient in battling inflation, since high interest rates have so far not hurt the job market. “Inflation has been lower…over the past year, but it remains high,” the Fed’s rate-setting committee said. The US Consumer Price Index (CPI) rose by…
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Federal Reserve projects three rate cuts later this year
US Federal Reserve (Fed) said that the economy is “expanding at a moderate pace” and that it expects inflation to return to its 2-5% target. Further, the Fed added that it expects the unemployment rate to drop below 4% over the next few years. The Fed also said that the labour market has been “robust”,…
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How a top economic adviser to Biden thinks about inflation and the job market
A majority of Americans think the US economy is getting worse, said Gallup last month. However, Lael Brainard, director of the National Economic Council, told Ari Shapiro that the numbers show that overall inflation and food inflation have come down significantly since the start of the year. This has not necessarily meant prices have come…
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The fight against inflation isn’t over yet because the Fed didn’t raise interest rates
The US Federal Reserve will likely maintain a target range of 5.25-5.25% for interest rates during its meeting on Wednesday, as per a Wall Street Journal report. The overall trend of slowing job openings is a sign that rate increases have cooled the economy, experts said. Notably, inflation also remains above the Fed’s 2% target.
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The June meeting of the Fed was a little tense about slow inflation progress
The US economy increased at an annual rate of 2% in the first three months of the year, down from 2.6% at the end of last year and 3.4% in the third quarter of 2022, according to a Wells Fargo report. The GDP grew at an annual rate of 2% in the fourth quarter of…
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The June’s record-smashing temperatures are in data
World Meteorological Organization (WMO) and UK Met Office have said that the next five years will be the warmest in recorded history. The last eight years were the warmest on record, they added. Extreme weather events linked to climate change have become more common and the past eight years were the warmest on record, a…
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Egg prices are lower in May but gas costs are higher
The US consumer prices in May were up 4% from a year ago, according to data released on Tuesday. Core inflation, which excludes food and energy prices, rose 5.3% from a year ago, while annual inflation fell to 9.1% from 9.1%. However, the decline in core inflation has been mainly due to the fall in…
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Christine Lagarde believes that the United States will not default on its debt
US Treasury Secretary Janet Yellen said in an interview that the “banking sector turmoil hasn’t stopped the US from achieving a soft landing”. She said the labour market gaining more slack will help bring inflation down but it doesn’t mean there need to be a significant jump in unemployment. “We’re seeing those supply chain bottlenecks…
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Mortgage rates drop for the fifth week in a row
US 30-year fixed-rate mortgage average fell to 6.67% in the week ended April 13, down slightly from 6.28% the previous week, according to data from Freddie Mac. The average rate dropped lower this week as bond yieldsbounced back from last week’s lows following economic data including last Friday’s jobs report that signaled a moderating job…
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The inflation fell in March but is still climbing quickly
US Federal Reserve’s chief economist and former Nobel Prize-winning economistolsbee Goolsbee on Tuesday said the most worrisome price hikes today are in the services sector, which was pummeled early in the pandemic and still hasn’t adjusted to a rapid rebound in demand. He added the recovery of the services sector from the Great Depression to…
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The grocery store has some items that are getting cheaper
Wholesale prices in the US fell for the first time in more than a year in March due to lower costs for fresh vegetables, meat and poultry, data from the Bureau of Labor Statistics showed on Thursday. While wholesale inflation slipped to 2.7% from an upwardly revised 4.9% in February, core producer price inflation fell…
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Inflation moderated in March, but is still rising too fast to be comfortable
US consumer prices increased by 5% in the 12 months ending in March, the Federal Reserve said on Wednesday. This is the lowest year-over-year inflation rate since May 2021. Stripping out food and energy, the core CPI rose by 0.4% in March compared to a 0.5% growth in February, the Fed added. In February, core…
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The Fed survey shows that consumers feel credit is harder to come by
The US Federal Reserve (Fed) said that “perceptions of creditaccess compared to a year ago deteriorated in March”. The Fed reported that the share of households that said it is harder to get credit than a year ago was at an all-time high. The central bank also said that inflation expectations for the year ahead…
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The markets are watching the US jobs data
The US Federal Reserve is likely to raise rates in May for the first time this year, Quincy Krosby, chief economist at Charles Stanley, said. He added that the Fed will focus on raising rates to stabilize prices and underestimating the kind of structural changes in the labour economy that have not resulted in the…
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In March, there were jobs lost and jobs gained
As many as 89,703 jobs were cut in US in March, the highest number of job cuts in one month since the recession ended, data from Challenger, Gray and Christmas revealed. This was over three times the number announced a year before, and a 15% jump from February. The US economy added just 236,000 jobs…
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The senator is opposing the ban on TikTok
A NPR/PBS NewsHour/Marist poll found that the economy continues to dominate as the most important issue facing the US, followed by preservation of democracy. It found that Democrats have vulnerabilities when it comes to the economy, crime and whether or not to ban TikTok, while the Republicans have vulnerabilities when it comes to trans rights…
