DIRS.INFO The most relevant business & tech news

Biden said that when negotiations began, he encouraged leaders of the two sides to stay at the bargaining table as long as possible. The head of the UAW said the union's negotiators “are hard at work at the bargaining table.”The UAW strike is just one of many labor disruptions. Still, a wider strike by the UAW could cause parts of the U.S. economy to shudder. The chain reaction across parts suppliers to the stores and restaurants that auto workers patronize could hurt local economies in Michigan, Wisconsin and other states that could be pivotal in next year’s election. Former President Donald Trump, the early Republican front-runner, said that union workers jobs are at risk because of Biden’s push to use of government incentives to build more EVs.

Persons: Joe Biden, autoworkers, ”, ” Biden, Stellantis, Biden, Julie Su, Gene Sperling, Shawn Fain, “, ’, Suzanne Clark, Joshua Bolten, ” Fain, Joe Brusuelas, Donald Trump, Trump, Jill Colvin Organizations: WASHINGTON, Big, White, United Auto Workers, General Motors, Ford, UAW, GM, Fiat Chrysler, Workers, Labor Department, Democratic, Business, U.S . Chamber of Commerce, RSM, Oxford Economics, Republican, NBC News Locations: Detroit, California , Oregon, Washington, U.S, Michigan , Wisconsin, China, United States, America

Inflation showed its sticky nature in July, rising slightly as increases in services costs offset a decline in the price of goods, the Bureau of Economic Analysis reported on Thursday. The personal consumption expenditures price index, a metric closely followed by the Federal Reserve, rose 0.2% for the month and 3.3% for the 12-month period. The core index, stripping out energy and food costs, rose 0.2% and 4.2%, respectively. “The decline in house prices appears to have abated, which means that the contribution from shelter to core inflation next year may stabilize if not increase. Upside inflation risk is also present in healthcare services where insurance prices are expected to rise this October along with a continued upward pressure on labor demand in the sector, thus suggesting higher wage costs.”

Persons: Joseph Brusuelas, Jerome Powell, ” Powell, ”, Shana Orczyk Sissel, Joe Davis Organizations: Economic, Federal, RSM, Dow Jones, Banrion Capital Management, Vanguard Locations: , Wyoming

☆ UK's FCA temporarily suspends Superdry's shares on request
▼ + stars: | 2023-08-30 | by ( ) www.reuters.com time to read: +1 min

Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo Acquire Licensing RightsCompanies Superdry PLC FollowAug 30 (Reuters) - Britain's Financial Conduct Authority (FCA) has temporarily suspended the listing of Superdry Plc's (SDRY.L) ordinary shares of 5 pence each on request, the fashion retailer said on Wednesday. "The board confirms that the delay is a result of normal procedures taking longer than anticipated during the first year that RSM are auditing the company," Superdry said in a statement. The company added it expects to request the listing's restoration on the release of its annual results before the end of the week. Earlier this month, it secured additional funding of up to 25 million pounds ($31.58 million) from restructuring specialist Hilco Capital.

Persons: Toby Melville, Superdry, Eva Mathews, Janane Organizations: FCA, Financial, Authority, REUTERS, RSM, LLP, Hilco, Thomson Locations: London, Britain, Bengaluru

☆ Don’t be fooled by rising consumer price data, take a peek behind the numbers
▼ + stars: | 2023-08-11 | by ( Alicia Wallace | ) edition.cnn.com time to read: +6 min

CNN —US consumer prices rose 3.2% for the 12 months ending in July, according to the latest Consumer Price Index, which landed Thursday. “Don’t be fooled by the uptick in [year-over-year] inflation,” noted Julia Pollak, chief economist for ZipRecruiter. Gimme (cheaper) shelter: Shelter (i.e. “Our baseline forecast suggests that year-over-year shelter inflation will continue to slow through late 2024 and may even turn negative by mid-2024,” the researchers wrote. Uncooked beef steak prices rose 2.3% and uncooked ground beef rose 1.5%.

Persons: It’s, Don’t, ”, Julia Pollak, Joe Brusuelas, ” Brusuelas, —, Anna Bahney, Danielle Wiener, Bronner, That’s, Douglas Elliman, Miller Samuel, Spencer Platt, Jonathan Miller, “, Read, Biden, Michelle Toh Organizations: CNN Business, Bell, CNN, ZipRecruiter, RSM US, Federal Reserve, Commerce Department, San Francisco, Big Apple, Getty Locations: Manhattan, New York, New York City, China, Silicon

☆ CPI: Consumer prices rose by 3.2% annually in July, picking up for the first time in 13 months
▼ + stars: | 2023-08-10 | by ( Alicia Wallace | ) edition.cnn.com time to read: +8 min

Minneapolis CNN —For the first time in more than 12 months, the pace of consumer price hikes accelerated on an annual basis. The Consumer Price Index rose 3.2% for the year through July, up from June’s 3% annual increase, according to data released Thursday by the Bureau of Labor Statistics. Core CPI, which excludes the more volatile food and energy prices, increased 0.2% from June and was up 4.7% from the year-ago period. July is the the fourth consecutive month that annual core CPI has eased, and the 4.7% rate landed 0.1 percentage points below consensus expectations. Shelter prices rose 0.4% month on month and were up 7.7% for the year ending in July.

Persons: “ Don’t, ”, Julia Pollak, Joe Biden, ” Biden, “ We’ve, Kurt Rankin, Dow, “, Joe Brusuelas, Brusuelas, Tamara Charm, Brandon Bell, Danielle DiMartino Booth, DiMartino Booth, — CNN’s Elisabeth Buchwald Organizations: Minneapolis CNN —, Bureau of Labor Statistics, BLS, CPI, Federal Reserve, PNC, Nasdaq, RSM US, CNN, San, Services, “, McKinsey, Quill Intelligence, Federal Reserve Bank of Dallas Locations: Minneapolis, June’s, San Francisco, Austin , Texas

☆ VIEW Bank of England raises rates for a 14th time
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +7 min

The BoE raised interest rates by 25 basis points to 5.25% and said high inflation meant it was unlikely to stop raising rates any time soon. However, with Thursday's decision, traders began to price in a lower peak in UK rates. MONEY MARKETS: Interest-rate derivatives showed traders believe UK rates will peak around 5.67% by March, compared with an expected peak of 5.73% in the run-up to the decision. Rising interest rates means higher borrowing costs, which will lead to larger monthly mortgage payments for many homeowners." The Bank of England remains committed to bringing inflation down, unfortunately raising interest rates is one of the only tools the Bank can use to sap demand out of the economy."

Persons: BoE, Sterling, VIVEK PAUL, we’ll, STUART COLE, JEREMY BATSTONE, CARR, RAYMOND JAMES, MARCUS BROOKES, ” SEEMA SHAH, Rishi Sunak, GILES COGHLAN, THOMAS PUGH, JOHN LEIPER, Amanda Cooper, Samuel Indyk Organizations: Bank of England, FTSE, BLACKROCK, LONDON, TOM HOPKINS, Bank of, RSM, Bank, EMEA, Thomson Locations: LONDON, EUROPEAN, U.S

☆ The last time US debt was downgraded markets plummeted. Will it happen again?
▼ + stars: | 2023-08-02 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Fitch Ratings downgraded US long-term debt late on Tuesday from AAA to AA+, citing this spring’s debt ceiling standoff as a major reason. In the midst of the very tense debt ceiling standoff of 2011, Standard and Poor’s downgraded US debt for the first time in history. “My sense is that the Fitch downgrade of the US credit rating is an insignificant development and will not move financial markets or the economy,” said Joseph Brusuelas, chief economist at RSM US. “The majority of our clients’ investments in China are through index funds, and we are one of 16 asset managers currently offering US index funds investing in Chinese companies,” BlackRock said in a statement to CNN. “With all investments in China and markets around the world, BlackRock complies with all applicable US government laws.

Persons: New York CNN — Fitch, Fitch, ”, Joseph Brusuelas, ” Fitch, Larry Summers, Janet Yellen, “, Dow, BlackRock, Larry Fink, Henry Fernandez, MSCI, Mike Gallagher of, Raja Krishnamoorthi, ” BlackRock, ” MSCI Organizations: CNN Business, Bell, New York CNN, AAA, AA, RSM, Federal Reserve, Fitch, Treasury, US, Twitter, Dow Jones, Nasdaq, Tech, Nvidia, Apple, Microsoft, Congressional, Chinese Communist Party of, BlackRock, CNN, People’s Liberation Army, PLA, Republican, “ Locations: New York, America, United States, States, Mike Gallagher of Wisconsin, Illinois, MSCI, China

Government data released Tuesday showed that boom continued in June, with spending on manufacturing facilities up nearly 80 percent over the past year. The manufacturing sector as a whole has added nearly 800,000 jobs since Mr. Biden took office and now employs the most people since 2008. Measures by the University of Michigan and the Conference Board suggest consumers have grown happier with the current state of the economy and more hopeful about the year ahead. Hourly wages outpaced price gains in the spring for the first time in two years, giving consumers more purchasing power. National opinion polls still show a sour economic mood — but it appears to be improving slightly.

Persons: Biden, ”, Joseph Brusuelas Organizations: RSM, University of Michigan, Conference Board, New York Times, Siena College Locations: Siena

A Reuters poll of economists had pointed to approvals of 49,000, after 51,143 mortgages were approved in May. The value of net mortgage lending for the second quarter as a whole fell compared with the first quarter - the first quarterly contraction since records began in 1987. The BoE is expected to raise interest rates to 5.25% on Thursday from 5.0%, which would be the highest Bank Rate since 2008. "Looking ahead, growth in households' real disposable incomes will be weighed down by mortgage refinancing," said Samuel Tombs, chief UK economist at consultancy Pantheon Macroeconomics. The BoE reported a 1.661 billion pound ($2.13 billion) monthly increase in net consumer lending June, the largest such increase since April 2018.

Persons: Banks, Liz Truss, BoE, Thomas Pugh, Samuel Tombs, Andy Bruce, David Milliken, Sarah Young, Christina Fincher Organizations: Bank of, RSM, Thomson

☆ Gasoline prices are spiking. That’s a problem for Powell and the Fed
▼ + stars: | 2023-07-26 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

The two-day jump in gasoline prices — the biggest in a year — is combining with a rally in wheat and other agricultural commodities. All told, gas prices have spiked 9 cents in 48 hours. Lower gas prices have been central to progress on slowing price increases. The IMF warned on Tuesday that grain prices could rise by 10% to 15% because of the collapse of the grain deal. Yawger noted that soybean futures have also climbed sharply amid concerns about high heat hurting crops in the United States.

Persons: haven’t, “, ”, Patrick De Haan, unnerve, Jerome Powell, Francisco Blanch, Joe Brusuelas, Brusuelas, Robert Yawger, Yawger, De Haan Organizations: New York CNN, Federal Reserve, AAA, unnerve ’, Bank of America, RSM, IMF, Mizuho Securities, Hurricanes, Nature, ExxonMobil, CNN Locations: Russia, Ukraine, United States, Baton Rouge

☆ Fed approves hike that takes interest rates to highest level in more than 22 years
▼ + stars: | 2023-07-26 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

WASHINGTON – The Federal Reserve on Wednesday approved a much-anticipated interest rate hike that takes benchmark borrowing costs to their highest level in more than 22 years. The midpoint of that target range would be the highest level for the benchmark rate since early 2001. Still, he seemed to leave room to potentially hold rates steady at the Fed's next meeting in September. All of those figures, while well below the worst levels of the current cycle, are running above the Fed's 2% target. Along with the rate hike, the committee indicated it will continue to cut the bond holdings on its balance sheet, which peaked at $9 trillion before the Fed began its quantitative tightening efforts.

Persons: WASHINGTON, Jerome Powell, Powell, Joe Brusuelas Organizations: Federal Reserve, Committee, Fed, Dow Jones Industrial, Nasdaq, Treasury, RSM, University of Michigan, CPI, Cleveland Fed's, Atlanta Fed

☆ Meet Ethan, an AI robot helping real estate companies decide what properties to buy
▼ + stars: | 2023-07-20 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +3 min

A generative AI tool is designed to help real estate firms decide which properties to buy and sell. The AI tool does the work of a real estate analyst. It then drafts memos recommending which properties real estate companies should buy and sell, Sahil Rattan, Termsheet's chief operating officer, told Insider. The client is looking to snap up commercial real estate properties whose prices have cooled from just a few years ago. Since the AI tool ChatGPT went live to the public in November, businesses in nearly every industry have been racing to capitalize on AI.

Persons: Ethan, Termsheet's, That's, Roger Smith, Smith, Airbnb, Brian Chesky, Chesky, ChatGPT Organizations: Service, RSM Locations: Wall, Silicon

☆ UK on track for most company insolvencies since 2009
▼ + stars: | 2023-07-18 | by ( ) www.reuters.com time to read: +2 min

LONDON, July 18 (Reuters) - England and Wales are on track for the highest quarterly number of company insolvencies since early 2009, as businesses struggle to repay COVID-19 loans against a tough economic backdrop, government figures showed on Tuesday. Over the three months to the end of June, there were 6,403 companies declared insolvent. If this figure is confirmed when official quarterly numbers are published later this month, it would be the highest non-seasonally-adjusted calendar-quarter total since the first quarter of 2009. As usual, most company insolvencies were creditors' voluntary liquidations - where company directors and creditors agree to wind up a company without a formal court order. "The drop is likely to come mainly from a fall in 'shut down' Creditors' Voluntary Liquidations where the catch-up from low points of Covid and Government support will largely be flushed out," Harris said.

Persons: Gareth Harris, Harris, David Milliken, Andy Bruce Organizations: COVID, Insolvency Service, RSM, Service, Bank of, Thomson Locations: England, Wales, May's, Bank of England, Covid

☆ US factories are booming, but finding workers is still a struggle
▼ + stars: | 2023-07-11 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +5 min

Despite that huge jump in manufacturing construction, employment in the sector has been stagnant over the last year, suggesting filling the new factories with workers could be difficult. Notably, other advanced economies have not experienced such surges in manufacturing construction, according to the Treasury Department. Since President Joe Biden took office, around 800,000 manufacturing jobs were added, or a 6.5% growth rate. This year has seen manufacturing employment remain especially stagnant, growing by just around 4,000 employees since January. Though many of the 1.4 million manufacturing jobs lost at the beginning of the pandemic have been recovered, many economists are worried all these new factories across the country could struggle to find enough workers.

Persons: hasn't, Joe Biden, Tony Schmitz, Kendra Blacksher, industrials Organizations: Service, Census, Infrastructure Investment, Jobs, Treasury Department, Manufacturing, National Association of Manufacturers, . Manufacturers, Fortune , University of Tennessee, The American Society of Mechanical Engineers, Bloomberg, RSM Locations: Wall, Silicon, China, Tennessee, American

☆ Payrolls rose by 209,000 in June, less than expected, as jobs growth wobbles
▼ + stars: | 2023-07-07 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

Nonfarm payrolls increased 209,000 in June and the unemployment rate was 3.6%, the Labor Department reported Friday. Employment growth eased in June, taking some steam out of what had been a stunningly strong labor market. A more encompassing unemployment rate that includes discouraged workers and those holding part-time jobs for economic reasons rose to 6.9%, the highest since August 2022. "This is a strong labor market where demand for higher paying jobs is clearly the trend," said Joseph Brusuelas, chief economist at RSM. The June report "suggests labor market conditions are finally beginning to ease more markedly," wrote Andrew Hunter, deputy chief U.S. economist at Capital Economics.

Persons: Nonfarm, Dow, downwardly, payrolls, Seema Shah, Joseph Brusuelas, Andrew Hunter Organizations: Labor Department, Dow Jones, Asset Management, ADP, Blacks, of Labor Statistics, RSM, Capital Economics

☆ The US labor market cooled off in June, adding just 209,000 jobs
▼ + stars: | 2023-07-07 | by ( Alicia Wallace | ) edition.cnn.com time to read: +4 min

Minneapolis CNN —The US job market cooled back down in June, adding just 209,000 jobs, and fueling optimism that the economy is on course to nail that elusive soft landing of lowering inflation without triggering a recession. That being said, last month’s job growth still outpaces the pre-pandemic average. “The job growth is slowing, but I don’t actually think that’s necessarily a bad thing,” Rucha Vankudre, senior economist for labor market analytics company Lightcast, told CNN. “In the tug of war between the labor market and the economy, there is still a push and pull, yet the labor market remains strong,” Becky Frankiewicz, president and chief commercial officer of ManpowerGroup, said in commentary issued Friday. In June, sectors such as government, as well as health care and social assistance, saw the biggest job gains: 60,000 and 65,200, respectively.

Persons: Rucha Vankudre, We’re, Becky Frankiewicz, ManpowerGroup, “, Lightcast’s Vankudre, ” “, Joe Brusuelas, ” Brusuelas, “ We’re, ” Organizations: Minneapolis CNN, Bureau of Labor Statistics, CNN, “, Federal Reserve, Service, BLS, RSM, Fed Locations: Minneapolis

☆ Premarket stocks: Does the Fed have the labor market all wrong?
▼ + stars: | 2023-07-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

New York CNN —The labor market just won’t quit, but this could be another case of “good news is bad news” for the Federal Reserve. But while job growth is a sign of a healthy economy, Fed Chair Jerome Powell has said that he wants to see more slack in the labor market in order to bring inflation down. But in April, the unemployment rate reached 3.4%, with the 12-month average of unemployment reaching a record low of 3.6%. Plus, the mass retirement of baby boomers, slowing of immigration rates and long-term health impacts of Covid have also permanently altered the labor market. Why it matters: These changes have led many economists to say that the labor market doesn’t matter anymore, said Kathryn Rooney Vera, chief market strategist at StoneX.

Persons: won’t, Jerome Powell, ”, Joe Brusuelas, Kathryn Rooney Vera, boomer, we’ve, “, Vera, Sam Stovall, Bryan Mena, Stovall, Jordan Valinsky Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Gross, RSM, Labor, Fed Fed, CFRA Research, Federal, CNN, Handil Holdings Locations: New York, “

☆ US consumer spending hits speed bump; inflation picture mixed
▼ + stars: | 2023-06-30 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, rising 0.2%. When adjusted for inflation, consumer spending was unchanged. Data for April was revised lower to show the so-called real consumer spending rising only 0.2% instead of 0.5% as previously reported. With consumer spending softening, inflation subsided. The so-called core PCE price index increased 4.6% on a year-on-year basis in May after advancing 4.7% in April.

Persons: Kevork, Sal Guatieri, Joe Biden's, Mike Graziano, Morgan Stanley, Dana Peterson, Lucia Mutikani, Jonathan Oatis Organizations: Walmart, REUTERS, Commerce, Reserve, BMO Capital Markets, Reuters, Services outlays, Treasury, RSM, Fed, Conference Board, Thomson Locations: Los Angeles, WASHINGTON, U.S, Toronto, Outlays, New York, Washington

☆ The Fed is secretly stress testing the US economy against nightmare scenarios
▼ + stars: | 2023-06-29 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

When asked how the Fed plans for the worst case scenarios on the geopolitical front, he first responded in Fedspeak. At every Fed policy meeting, he said, “our staff works up six or seven or eight alternative simulations,” he said. The market impact: The policy scenarios considered by the Fed are quite sensitive. That’s likely why when Powell was asked about the scenarios the Fed had most recently considered, he stayed mum. They’re posting elaborate TikToks where they pretend that the McDonald’s Grimace shake has killed them, of course.

Persons: Jerome Powell, Powell didn’t, ”, they’re, Joe Brusuelas, Stacey Tevlin, Ben Bernanke, Philippa Dunne, “, Danielle DiMartino Booth, That’s, Powell, “ I’m, Joe Biden, Biden, “ Bidenomics, Elisabeth Buchwald, Bryan Mena, Read, McDonald’s, Scottie Andrew, Grimace’s, Ronald McDonald, Andrews, it’s, Matthew Prince, “ It’s Organizations: New, New York CNN — Federal, European Central Bank, Federal, RSM, “, Fed, Bloomberg, TLR, QI Research, Federal Reserve, Chapman University, CNN Locations: New York, Portugal, Fedspeak, China, Chicago, America, California, ”

☆ Inflation hurts. But White House economists find that it’s even worse in every other G7 nation
▼ + stars: | 2023-06-27 | by ( Matt Egan | ) edition.cnn.com time to read: +7 min

New York CNN Business —The United States is recovering faster than its peers from the historic bout of inflation squeezing families and souring the mood of the nation, according to a new analysis from White House economists. To address that, the White House economists built an apples-to-apples inflation metric that makes certain adjustments to how shelter costs factor into overall inflation. But we are very heartened and happy to see the trend going where it is,” a CEA official told CNN in a phone interview. And here’s the thing about inflation: It is undeniably down in the United States.”Two independent economists that CNN shared the CEA report with support the logic powering the analysis. That is absolutely a painful thing,” the CEA official said.

Persons: Joe Biden’s, “, “ I’m, Mark Zandi, Republican John McCain, Zandi, Joe Brusuelas, ” Brusuelas, Joe Biden, Ronald Reagan, Biden, Brian Moynihan, CNN’s Poppy Harlow, George W, Bush, Piper Sandler, Trump, ” Piper Sandler Organizations: New York CNN Business —, White House, of Economic Advisers, CNN, CEA, White, Republican, RSM, Federal Reserve, Bank of America, Federal, Gallup Locations: United States, Ukraine, Canada, France, Germany, Italy, Japan, United Kingdom, America, Europe, Wall, Middle America

☆ How one organization is enabling real-time, intelligent decision-making at scale to improve efficiencies and mitigate risk
▼ + stars: | 2023-06-26 | by ( Sponsor Post | Created Insider Studios With Alteryx | ) www.businessinsider.com time to read: +7 min

Data analytics can be a game-changer for helping businesses see potential outcomes and make decisions. Belsham said another achievement of data analytics is the removal of the possibility of human error. "With the way Alteryx functions, with the embedded auditing, it's almost self-governing." "Attracting — and retaining — talented staff at RSM has been given a huge boost by digital transformation and adopting a data analytics strategy," Herring said. Find out more about how the award-winning Alteryx Analytics Cloud Platform can help your business make intelligent decisions across the organization with automated, AI-driven insights.

Persons: Kevin Rubin, Paul Herring, Alteryx, Herring, It's, Sarah Belsham, Belsham, you've, clamoring Organizations: RSM, Finance, RSM International, Excellence, Technology, Insider Studios Locations: Alteryx

☆ Motor vehicles, building materials lift US retail sales in May
▼ + stars: | 2023-06-15 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

WASHINGTON (Reuters) - U.S. retail sales unexpectedly rose in May as consumers stepped up purchases of motor vehicles and building materials, which could help to stave off a dreaded recession in the near term. Retail sales increased 0.3% last month after rising 0.4% in April, the Commerce Department said. SLOWER MOMENTUMExcluding automobiles, gasoline, building materials and food services, retail sales gained 0.2% last month. Data for April was revised slightly lower to show these so-called core retail sales rising 0.6% instead of the previously reported 0.7%. With price pressures easing in May, economists estimated that core retail sales increased 0.2% after adjusting for inflation.

Persons: ”, Robert Kavcic, Mike Graziano, Ben Ayers, Unadjusted, Conrad DeQuadros, Tim Quinlan Organizations: WASHINGTON, Federal Reserve, Fed, Wednesday, BMO Capital Markets, Commerce Department, Reuters, Saks Fifth, REUTERS, RSM, Consumers, Nationwide, Labor Department, Treasury, Atlanta Fed, Writers Guild of America, Brean, Manufacturing, Federal Locations: Minnesota, U.S, Toronto, New York City, Columbus , Ohio, Texas, California, Writers Guild of America . Georgia, Florida , Illinois , Indiana , Connecticut, New York, Philadelphia, Wells, Charlotte , North Carolina

☆ The Fed just paused on raising interest rates. Here's what it means for jobs, prices, and your bank account this summer.
▼ + stars: | 2023-06-14 | by ( Bartie Scott | Andy Kiersz | ) www.businessinsider.com time to read: +7 min

The Federal Reserve announced Wednesday that it would not raise interest rates this month. It's important to note that a one-time pause doesn't mean interest rates won't rise any more at future meetings, but the committee signaled that an end is in sight. The decision included a projection of two more 25 basis point rate hikes before the end of the year. Critics of the Fed's aggressive rate hikes over the last year have said they risk putting Americans out of work by squeezing businesses. The Fed needs to slow down on these extreme rate hikes and remember its dual mandate of price stability and maximum employment.

Persons: —, Jerome Powell, Noah Sheidlower, Jobs, Massachusetts Sen, Elizabeth Warren, Powell, it's, Joe Brusuelas, Brusuelas, Kathy Gramling, Marta Norton, Norton Organizations: Federal Reserve, Service, Fed, Capital Economics, Food, RSM, EY, Morningstar Wealth's America, Silicon Valley Bank, First, FDIC Locations: Massachusetts, EY Americas, Silicon, First Republic

☆ Bad news for the Fed: American workers are becoming less productive
▼ + stars: | 2023-06-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

But what does the Fed mean when it talks about labor markets and their impact on inflation? What’s happening: At its most basic level, labor productivity is a measure of the value of the goods and services produced by a company compared with the amount of labor used to produce that output. Labor productivity decreased 2.1% in the first quarter of 2023, the US Bureau of Labor Statistics reported earlier this month. The silver lining: The good news is technological innovations typically drive upturns in productivity and AI could be such an innovation. Absolutely not,” Yellen said, echoing the joint statement leaders from the Group of Seven made at last month’s summit in Japan.

Persons: Lisa Shalett, ”, Lisa Cook, Joseph Brusuelas, Sundar Pichai, aren’t, Jeffrey Sonnenfeld, Richard Blumenthal, “, Doug McMillon, Roger McNamee, Steven Spielberg, Vito Corleone, Janet Yellen, ” Yellen, Elisabeth Buchwald, Yellen, Biden Organizations: CNN Business, Bell, New York CNN — Federal Reserve, Morgan Stanley Wealth Management, Fed, Labor, US Bureau of Labor Statistics, BLS, McKinsey Global Institute, Federal, RSM US, of America, Google, Yale School, Management’s, Leadership Institute, Walmart, Technology, Financial, International Monetary Fund, Inter, American Development Bank group’s, African Development Fund, IMF Locations: New York, United States, Michigan, Connecticut, China, Japan

☆ The case for a 2023 US recession is crumbling
▼ + stars: | 2023-06-05 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

New York CNN —Many CEOs, investors and economists had penciled in 2023 as the year when a recession would hit the American economy. But the case for a 2023 US recession is crumbling for a simple reason: America’s jobs market is way too strong. Zandi is growing more confident that 2023 won’t be the year when a downturn will begin. “We’re running out of time for a 2023 recession,” Justin Wolfers, an economics professor at the University of Michigan, told CNN. Friday’s jobs report did offer some conflicting signals, especially in the household survey, which economists put less weight on because it tends to be noisier.

Persons: Mark Zandi, won’t, ” Zandi, “, Justin Wolfers, “ We’ve, payrolls, Wolfers, They’ve, ” Wolfers, ” Macy’s, Zandi, Joe Brusuelas, Morgan Stanley Organizations: New, New York CNN, Federal Reserve, Moody’s, CNN, University of Michigan, Bureau of Labor Statistics, Bank of America, Challenger, RSM Locations: New York, ”

Search resuls for: "RSM"

25 mentions found