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Inflation Eased in April but Remains Stubbornly High
  + stars: | 2023-05-10 | by ( Gabriel T. Rubin | ) www.wsj.com   time to read: 1 min
Inflation is still much higher than the Fed’s target and economists are warning it may be stickier than markets are expecting. WSJ’s Dion Rabouin breaks down what the April CPI showed and what matters for markets and the economy. Photo: Andrew Harrer/Bloomberg NewsInflation edged slightly lower in April, likely keeping the Federal Reserve on course to pause interest-rate increases at its next meeting. The consumer-price index rose 4.9% in April from a year earlier, the Labor Department said Wednesday, down from March’s 5% increase. The inflation reading has declined from a recent peak of 9.1% in June 2022, but remains historically high.
E66CPI, the Debt Ceiling and the State of Small Business: What to Watch Markets this week will be closely attuned to the latest inflation reading, with all eyes on CPI. Investors will also need to watch the looming deadline for raising the U.S. government debt ceiling. WSJ's Dion Rabouin explains. Photo: Andrew Kelly/Reuters
E65How the April Jobs Report Could Change Inflation and Recession Fears The April jobs report provides the latest update on the health of U.S. consumers and how companies are responding to higher borrowing costs. It’s also got key data about the pace of inflation. WSJ's Dion Rabouin explains. PHOTO: Bryan Tarnowski/Bloomberg News
Strong Labor Market Data Sparks Bond Selloff
  + stars: | 2023-05-05 | by ( Eric Wallerstein | ) www.wsj.com   time to read: 1 min
The April jobs report provides an update on the health of U.S. consumers and how companies are responding to higher borrowing costs. PHOTO: Bryan Tarnowski/Bloomberg NewsA midweek bond rally fueled by worries over the economy and banking system was cut short on Friday when the labor market again proved surprisingly resilient. Yields on U.S. Treasurys climbed after jobs data showed hiring remains strong and wages continue to rise, sparking a selloff in the Treasury market. The two-year yield surged to a recent 3.926% from 3.727% on Thursday, according to Tradeweb . The yield on the 10-year note was recently at 3.454%, up from 3.350% on Thursday.
E63First Republic’s Failure and What to Watch This Week What’s next as First Republic Bank is sold to JPMorgan? Also, the Fed meets two days before the latest U.S. nonfarm payrolls report and right in the middle of a slew of earnings reports. WSJ's Dion Rabouin explains. Photo: Brendan McDermid/Reuters
The collapse of Silicon Valley Bank sent shock waves through Wall Street and Main Street. WSJ’s Dion Rabouin explains what this means for investors and everyday Americans. Illustration: Preston JesseeToronto-Dominion Bank and Tennessee-based First Horizon have called off their $13.4 billion merger. TD ran into hurdles getting regulators to sign off on the deal, announced in February 2022. The Canadian lender said it couldn’t be sure when or if it would get the necessary approvals, so the two banks decided to terminate the deal.
There’s an investment that’s 100% backed by the U.S. government, never loses its value and is paying more than 7% interest a year. So, why haven’t most Americans heard of Series I Savings Bonds? Photo: TNS/Zuma PressThe interest rate on I bonds is 4.3%, down from 6.89%, the Treasury Department said Friday. This rate will apply to I bonds purchased now and for the next six months. Preview SubscribeThough the new rate is less than half the 9.62% offered last year, when the inflation-adjusted savings became so popular investors crashed Treasury’s website, financial advisers say they may now be a better bet for the long term.
The collapse of Silicon Valley Bank, which held $200 billion in assets, has sent shock waves through Wall Street and Main Street. WSJ’s Dion Rabouin explains what this means for investors and everyday Americans worried about a broader, systemic problem in the U.S. banking system. Illustration: Preston JesseeWASHINGTON—The Federal Reserve may close a loophole that allows some midsize banks to effectively mask losses on securities they hold, a contributing factor in the collapse of Silicon Valley Bank. Led by vice chair for supervision Michael Barr , the Fed is considering ending an exemption that allows some banks to boost the amount of capital they report for regulatory purposes, according to people familiar with the matter. Capital is the buffer banks are required to hold to absorb potential losses.
The Labor Market Might Be Bending; It Isn’t Breaking
  + stars: | 2023-04-20 | by ( Justin Lahart | ) www.wsj.com   time to read: 1 min
The latest U.S. jobs report gives important context on what comes next for how American companies are managing growing fears of a recession. WSJ’s Dion Rabouin explains. PHOTO: Jordan Vonderhaar/Bloomberg NewsThe U.S. job market isn’t at a rolling boil anymore. It is hardly tepid. That is good news for the economy, but less good for any investors hoping the Federal Reserve won’t raise rates at its meeting next month, much less embark on an easing campaign anytime soon.
E56Jobs, the Credit Crunch and Recession Fears: 3 Things to Watch As recession fears grow, new data on jobs and consumer credit will provide some timely updates. The data will also offer some clarity on inflation and what the Fed will do next. Here's what to watch for this week. Photo: Brandon Bell/Getty Images
E56Jobs, the Credit Crunch and Recession Fears: 3 Things to Watch As recession fears grow, new data on jobs and consumer credit will provide some timely updates. The data will also offer some clarity on inflation and what the Fed will do next. Here's what to watch for this week. Photo: Brandon Bell/Getty Images
E50Big Companies Are Planning Record Stock Buybacks. Here’s Why. Companies are on pace to buy back more than $1 trillion worth of their own stock this year. WSJ’s Dion Rabouin explains why companies buy their own stock and why they’re choosing to do so now. Photo: Elizabeth Smelov
E49Investors Don't Believe the Fed’s Inflation Plan. Here’s How We Know. Fed funds futures show investors see about a 2% chance that the Federal Reserve does what it said it would do at its last meeting. That could have some serious consequences for investors and for the U.S. economy. WSJ’s Dion Rabouin explains.
E49Investors Don't Believe the Fed’s Inflation Plan. Fed funds futures show investors see about a 2% chance that the Federal Reserve does what it said it would do at its last meeting. That could have some serious consequences for investors and for the U.S. economy. WSJ’s Dion Rabouin explains. Illustration: Rami Abukalam
As Black-Owned Banks Steadily Fade Away, Investors Step In to Form One A former Trump adviser and a daughter of Rev. Martin Luther King Jr. help lead the planned Redemption BankAshley Bell, a former Trump White House policy adviser, is to serve as the new bank’s chief executive. Photograph by Alyssa Pointer for The Wall Street Journal
E46Americans Lost $603 Billion by Sticking With Big Banks. Here’s How. Americans have missed out on $603 billion of free money over the last eight years by sticking with big banks like Wells Fargo and Bank of America. WSJ’s Dion Rabouin explains why people aren't moving their money in smarter ways and why they should be. Photo: Brian Snyder/Reuters
A surge in hiring by American small businesses could run afoul of the Federal Reserve’s efforts to cool inflation. Small companies have been responsible for all of the job growth in the U.S. since the onset of the Covid-19 pandemic and account for almost four out of five available job openings, according to a Wall Street Journal review of labor data and an analysis by Jefferies.
E46Americans Lost $603 Billion by Sticking With Big Banks. Here’s How. Americans have missed out on $603 billion of free money over the last eight years by sticking with big banks like Wells Fargo and Bank of America. WSJ’s Dion Rabouin explains why people aren't moving their money in smarter ways and why they should be. Photo: Brian Snyder/Reuters
E46Americans Lost $603 Billion by Sticking With Big Banks. Here’s How. Americans have missed out on $603 billion of free money over the last eight years by sticking with big banks like Wells Fargo and Bank of America. WSJ’s Dion Rabouin explains why people aren't moving their money in smarter ways and why they should be. Photo: Brian Snyder/Reuters
E43Another Wave of U.S. Layoffs May Be Coming. The layoff announcements just keep coming. As interest rates continue to climb and earnings slump, WSJ’s Dion Rabouin explains why we can expect to see a bigger wave of layoffs in the near future. Illustration: Elizabeth Smelov
The Wall Street Journal is urging Phoenix police to investigate after one of its Black reporters was handcuffed and detained while working on an assignment on the city’s north side. On Nov. 23, Dion Rabouin, who covers finance for the Wall Street Journal, was detained in a police car while conducting interviews outside a Chase Bank. “We’re deeply concerned that Wall Street Journal reporter Dion Rabouin was detained, handcuffed and placed in the back of a police vehicle while reporting,” a Journal spokesperson said in a statement. I’m a reporter for The Wall Street Journal. A Phoenix Police Department spokesperson told NBC News that bank personnel called the police after customers complained Rabouin was approaching them and asking personal questions.
The incident between The Journal reporter Dion Rabouin and the Phoenix officer occurred in late November, but just became public his week after ABC affiliate KNXV reported on the matter. In a statement, The Journal said that it is “deeply concerned” with how its reporter was treated and has asked the Phoenix Police Department to conduct an investigation. The video shows Rabouin repeatedly identified himself as a reporter for The Journal, but the officer did not appear to care. A representative for Chase told me Thursday that the bank did apologize to Rabouin over the incident. The Phoenix Police Department can start now.”The Committee to Protect Journalists has also sounded the alarm over the incident.
Big Banks Predict Recession, Fed Pivot in 2023
  + stars: | 2023-01-02 | by ( Dion Rabouin | ) www.wsj.com   time to read: 1 min
Big banks are predicting that an economic downturn is fast approaching. More than two-thirds of the economists at 23 large financial institutions that do business directly with the Federal Reserve are betting the U.S. will have a recession in 2023. Two others are predicting a recession in 2024.
E43Another Wave of U.S. Layoffs May Be Coming. The layoff announcements just keep coming. As interest rates continue to climb and earnings slump, WSJ’s Dion Rabouin explains why we can expect to see a bigger wave of layoffs in the near future. Illustration: Elizabeth Smelov
E43Another Wave of U.S. Layoffs May Be Coming. The layoff announcements just keep coming. As interest rates continue to climb and earnings slump, WSJ’s Dion Rabouin explains why we can expect to see a bigger wave of layoffs in the near future. Illustration: Elizabeth Smelov
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