Fed Holds Line on Rates Despite Rising Prices
The central bank expects to maintain ultralow rates until “inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.”
U.S. Consumer Prices Increase 0.4% in February
Economists expect the rise in prices to continue into the summer, pushing inflation past the Federal Reserve’s 2% target.
Stimulus Checks, Vaccines Fuel Executive Optimism
An AICPA survey finds "a resurgent sense of optimism about the economy overall, despite the deep pain that remains in key sectors and industries."
Labor Cost Index Rises 0.7% in Fourth Quarter
“Overall, compensation costs are likely to remain subdued going forward, reflective of a high level of unemployment that will restrain wages."
Inflation Flat in October as Coronavirus Surges
“With the explosion in virus numbers putting downward pressure on demand in the short-term, we expect inflation to remain subdued for a while yet."
July Jump in Prices Eases Disinflation Fears
Core inflation rose 0.6% last month, the largest gain since January 1991, as the disinflationary impact of the coronavirus continued to wear off.
Core Inflation Posts Record 0.4% Drop in April
The coronavirus crisis drove consumer prices into "a disinflationary shock" last month despite government efforts to stimulate the economy.
U.S. Consumer Spending Plunges Record 7.5%
The March decline in spending "is the tip of the iceberg. The worst is yet to come with the April data.”
U.S. Consumer Prices Tumble 0.4% in March
“Deflation is likely to take hold over the next few months as businesses slash prices in response to much lower demand from the coronavirus outbreak."
U.S. Producer Prices Fall 0.6% in February
"The disinflationary impact from the [coronavirus] and the crash in oil prices will exert even more downward pressure on prices."
U.S. Productivity Grows at Revised 1.2% Rate in Q4
After the third-quarter contraction, “There is hope that the recent slight productivity uptick may lead to better results in the future."