District of Columbia | November 11, 2021
Consumer prices soar, Biden doubles down on higher government spending
District of Columbia | November 11, 2021
Consumer prices hit a 31-year high in October, a worse-than-expected report on inflation that put President Biden on the defensive and spelled more trouble for his unfinished massive social spending bill.
The Consumer Price Index, which monitors the costs of goods such as gasoline and groceries, rose 6.2% in October compared with October 2020, the Labor Department reported Wednesday. That was the largest increase since December 1990 and greater than the Dow Jones estimate of 5.9%.
The worsening inflation bolstered the arguments of economists such as Democrat and former Treasury Secretary Larry Summers, who has been saying for most of this year that more government spending and higher taxes would “further stimulate an already overheating economy.”.. (Excerpts from the Washington Times)
District of Columbia | November 10, 2021
Inflation has taken away all the wage gains for workers and then some
District of Columbia | November 10, 2021
Real average hourly earnings when accounting for inflation, actually decreased 0.5% for the month. A 0.9% inflation increase negated a 0.4% rise in wages.
Consumer confidence has been sliding despite the rising wages, which are up nearly 5% nominally year over year but have declined 1.2% in real terms.
The Fed finds itself under increasing pressure to adjust policy accordingly.
What looked like a big jump in workers’ wages during October turned into just another gut-punch after accounting for inflation.
The Labor Department reported Friday that average hourly earnings increased 0.4% in October, about in line with estimates. That was the good news.
However, the department reported Wednesday that top-line inflation for the month increased 0.9%, far more than what had been expected. That was the bad news – very bad news, in fact.
That’s because it meant that all told, real average hourly earnings when accounting for inflation, actually decreased 0.5% for the month. So an apparent solid paycheck increase actually turned into a decrease, and another setback for workers still struggling to shake off the effects of the Covid pandemic.“For now, inflation is going to continue to run above very solid wage growth,” said Joseph LaVorgna, chief economist for the Americas at Natixis and former chief economist for the National Economic Council during the Trump administration. “This is why when you look at consumer confidence, it’s really taking a beating. Households do not like the inflation story, and rightly so.”… (Excerpts from CNBC)
District of Columbia | November 8, 2021
Biden admin considering shutting down another pipeline, drawing criticism and dire warnings as winter nears
District of Columbia | November 8, 2021
The Biden administration is reportedly weighing the potential market consequences of shutting down an oil pipeline in Michigan, drawing criticism from opponents. Former Michigan Gov. Jennifer Granholm, Biden’s energy secretary, predicted Sunday that heating prices will rise this winter regardless of the Biden administration’s decision on the pipeline. “Yeah, this is going to happen. It will be more expensive this year than last year,” Granholm told CNN. The administration has yet to decide on what to do with Line 5 and officials were gathering information only to present a clear picture of the situation. (Excerpts from Fox News)
District of Columbia | November 5, 2021
Pessimistic Outlook for the National Economy
District of Columbia | November 5, 2021
As the growth of the U.S. economy slows, prices increase, and supply chain issues persist, 65% percent of Americans consider the national economy to be in poor condition. And nearly half expect the national economic situation to get even worse next year.
However, Americans’ views of their own finances have remained consistent throughout the pandemic. Sixty-five percent describe the financial situation in their household as good.
Views of the economy remained consistent throughout the spring and summer. Last month, 54% said the economy was poor and 45% said it was good. Now, 65% consider the economy to be poor condition…. (Excerpts from the AP)
District of Columbia | November 5, 2021
Hopes rise for US jobs growth after slowdown in recovery
District of Columbia | November 5, 2021
Economists expect US jobs growth to have picked up after two straight months of disappointing gains, as Covid-related concerns that have kept workers on the sidelines ease further. According to a consensus forecast compiled by Bloomberg, employers in the world’s largest economy are expected to have added 450,000 jobs in October, more than double the disappointing 194,000 positions created the previous month but still short of the roughly 560,000 monthly average seen since the start of the year. The unemployment rate is expected to have taken another leg lower in October, falling to 4.7 per cent. That is down from 4.8 per cent in September and well below June’s level of 5.9 per cent. The data, which will be released by the Bureau of Labor Statistics at 8.30am US eastern daylight saving time on Friday, comes at a critical moment for the labour market recovery, which has lost momentum in recent months. … (Excerpts from the Financial Times)
District of Columbia | October 30, 2021
Wealthy Americans Taking Action to Protect Portfolios Ahead of Biden’s Tax Hikes
District of Columbia | October 30, 2021
A new survey published by UBS Global Wealth Management found that a significant proportion of U.S. investors with at least $1 million in assets are taking action to get ahead of the tax changes proposed by the Biden administration as “their optimism in the economy wavers due to concerns about politics, potential tax increases, national debt, and inflation.”
“Investors would like to get ahead of potential changes by making adjustments to their portfolios,” UBS said in the survey (pdf), noting that 40 percent said that, due to potential tax changes, they’re thinking about shifting assets that aren’t generating profits…. (Excerpts from the Epoch Times)