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Tag Archives: Federal Reserve

US Economy: Looking Good

According to Jamie Dimon, CEO of JPMorgan Chase, America’s economy is currently looking “pretty good.”  However, it is likely that there will soon be a “downturn,” with the economy “certainly dipping into a recession.”

In an article written by Troy Tanzy and Daniel Rangel, it was stated:

“Core inflation was back above 2% for March, according to the latest inflation report which came out Wednesday morning. The Consumer Price Index (CPI) was down slightly in March (down 0.1% month over month), but the core inflation rate rose 0.2% for the month. According to TD Economics, a 4.9% drop in gasoline prices held the CPI level relatively constant to slightly down.”

This marks a rise in inflation  which is “reflective of higher prices in housing, medicine and food.” It is also expected that Federal Reserve officials will increase rates another two more times (at least) this year with the observation of the continued escalation in inflation to its target rate.  However, with inflation continuing to accelerate, rates will be raised in accordance by the Fed, partly as a defensive tactic against a possible recession.

Mortgage Rates Lowest Since May 2013

The mix of global-market uncertainty and the decision by the Federal Reserve to restrain interest rates has contributed to mortgage rates’ record low levels since May 2013. Today, according to a survey done by Freddie Mac, 30-year fixed-rate mortgages have sunk to 3.54 percent. The rate for 15-year mortgages is now 2.81 percent. In November… Continue Reading

November’s Job Growth Higher than Expected: Bodes Well for Interest Rate Hike

November added 211,000 more jobs to the economy, according to data released by the Bureau of Labor Statistics. The unemployment rate is staying close to its five-year low at 5 percent. Job increases were seen in several sectors, including food services and retail. The good stats for job growth will hopefully make it easier for… Continue Reading

Consumer Confidence Up, Economy Chugging Along

The Commerce Department released its latest figures for retail sale and restaurants, showing a rebound in September after a slow start to the year. The retail and restaurant sector posted a 0.2 percent monthly gain in August, and an annual increase to date of 2.2 percent. Analysts believe that retail sales improvement is all that… Continue Reading

Yellen Tells Congress: Financial System Safer Now than Before the Financial Crisis

Speaking before the House Committee on Financial Services last week, Janet Yellen, head of the Federal Reserve, testified that the US financial system is much safer today than it was in 2007 when the most recent economic decline commenced. “I believe the financial system is much safer. There is twice as much high-quality capital among… Continue Reading

Economy Thawing as GDP Expands

Now that the long, cold winter is fading into the past, spring is bringing warmth as well as growth to the US economy. According to the government, the US economy saw 4.6 percent annualized growth during the 2nd quarter of 2014, compared to a 2.1 percent slowdown in the first quarter. Analysts expressed optimism that… Continue Reading

NABE Survey Feels Good About Economy

According to a survey conducted by the National Association of Business Economists, most economists believe that the Federal Reserve is “on the right track” with its programs to repair the US economy. The NABE survey, which was released on Monday, also showed that a majority of economists believe that there is only a small risk… Continue Reading

Investing in a Post-QE3 Economy

Ben Bernanke, the chairman of the Federal Reserve, was in Jackson Hole, Wyoming on Friday discussing the intentions of the Fed to help the faltering US economy. Still undecided about another round of quantitative easing, Bernanke did not announce bond buying by the Fed to stimulate the economy, nor did he rule it out. Labeled… Continue Reading

The Fed and Economic Recovery

The Federal Reserve’s dejected outlook for additional economic recovery in the U.S. this year is reason for concern, but officials are nonetheless pooling their efforts in hopes of boosting job growth. Still, many believe the central bank has already exhausted its chances of stimulating the economy any further this year. On Wednesday, the Fed stated… Continue Reading