Some underlying measures of inflation are actually worsening.
that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession.
that is boosting paychecks, forcing companies to raise prices to cover higher labor costs and giving more consumers the wherewithal to spend.from July to August and 8.3% from a year ago, which was down from June’s four-decade high of 9.1% Demand-driven inflation is one way to say that consumers, who account for nearly 70% of economic growth, keep spending, even if they resent having to pay more. In part, that is because of widespread income gains and in part because many Americans still have more savings than they did before the pandemic, after having postponed spending on vacations, entertainment, and restaurants.
Some economists now think the Fed will have to raise its benchmark short-term rate much higher, to 4.5% or above, by early next year, more than previous estimates of 4%. Higher rates from the Fed would, in turn, lead to higher costs for mortgages, auto loans and business loans.substantial three-quarters of a point next week
Higher prices have yet to cause much of what economists call “demand destruction” — a pullback in spending that could quell inflation. Though higher gas prices have caused Americans to drive less, there isn’t much evidence of significant cutbacks elsewhere. Wages and salaries jumped 6.7% in August from a year earlier, according to the Federal Reserve Bank of Atlanta’s wage tracker, the biggest increase in nearly 40 years. And Luzzetti noted that the same data shows a record wage premium for people who switch jobs, compared with those who stay put. That means employers are still offering big raises to try to fill jobs.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Driven by consumers, US inflation grows more persistentU.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession
Read more »
Driven by consumers, US inflation grows more persistentWASHINGTON (AP) — U.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession.
Read more »
Driven by consumers, US inflation grows more persistentU.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession.
Read more »
Driven by consumers, US inflation grows more persistentU.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession. inflation kprc2 click2houston us
Read more »
Driven By Consumers, U.S. Inflation Grows More PersistentU.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession.
Read more »
Driven by consumers, US inflation grows more persistentSome underlying measures of inflation are actually worsening.
Read more »