The Federal Reserve Bank of Philadelphia yesterday named Patrick Harker as its new president. What’s interesting about this appointment is Harker’s background: Unlike most reserve bank presidents, Harker does not hold a doctorate in economics, nor has he worked inside the Fed system, although he has served on the Philly Fed board for the last three years.
There’s more data out this morning showing subdued inflationary pressures. The Commerce Department reported today that the price index for personal consumption expenditures increased at an annual rate of 0.2 percent in January. The Federal Reserve has set a target of 2 percent annual inflation, so this is far below that target.
Despite an economy that may have entered a soft patch, Americans are still beating a path to their health clubs, acupuncturists and spas.
There’s a little more evidence this morning that the economic expansion is in a soft patch, as the Consumer Price Index fell 7/10ths of a point in data released this morning by the Department of Labor. But to really understand what’s going on, you need to look below the headline.
Federal Reserve Chairwoman Janet Yellen was in front of the Senate Banking Committee this morning, as she continued to show patience about raising interest rates. She noted the recent economic growth, and said there was still plenty of room for improvement.
The strengthening U.S. dollar is a double-edged sword for the economy and investors, and in our new report released today, you can see how it affects everything from prices at the store – and the pump -- to jobs and inflation.
AIER Research Fellow Luke Delorme was featured on Friday in a CNBC.com article on retirement planning. Luke had also received favorable press coverage for his January report on rethinking retirement guidelines, including mentions by The Aspen Institute, Forbes and Bloomberg.
The strong dollar has been taking its toll on U.S. corporate profits, especially those companies who sell their products abroad, as The Associated Press reports today. Coca-Cola and Pepsi both reported falling sales directly linked to the exchange rate, and companies like Avon and Yum brands have also said the dollar has hurt their bottom lines.
The supercold weather has made economists’ job a little harder this winter, as they try to paint a picture of consumer and business behavior beyond that of people simply wanting to stay inside for fear of freezing.
We read with interest David Leonhardt’s story in this morning’s New York Times about a study out of George Washington University that highlighted the state of income inequality in America, with some surprising conclusions. The study, by GWU economist Stephen J. Rose, concluded that income inequality has not actually risen since the financial crisis started in 2007.
Politicians talk about the “middle class” often. The President highlighted policies aimed at helping the middle class in his budget proposal. And The New York Times recently wrote about the shrinking middle class. But how do we define the “middle class”? Who is and who isn’t in it?
Consumer spending got off to a sluggish start in the new year, but strong spending at restaurants and drinking establishments has helped temper that trend.
The improving economy – and the distance it still has yet to go – came into focus this week, as for the first time since January 2001, we learned there were more than 5 million job openings in this country in December.
Students at Monument Mountain Regional High School are exploring a very interesting and creative twist on traditional economic indexing.
The Everyday Price Index, calculated each month by the American Institute for Economic Research, reflects price changes felt by Americans on a day-to-day basis, measuring the prices of those items that they buy frequently, such as food, utilities, fuel, and prescription drugs.
Despite an uptick in the unemployment rate, this morning’s jobs report showed reassuring strength, as a million people entered the workforce in January alone. The report from the Bureau of Labor Statistics comes after a number reports have suggested weakness in some parts of the economy in recent weeks.