The Consumer Price Index for July 2017 came out on Friday with a modest 0.1% tick upward. This comes to a year-to-year basis of 1.7% which is still below the Federal Reserves 2.0% target rate. Of course, the Federal Reserve does not use the CPI to track inflation. They use the Price Consumption Expenditures (PCE) … Continue reading Inflation is NOT Out of Control but Why does the FED Continue to Raise Rates?
First and foremost, I would like to apologize for my lack of publications in the recent weeks. My day job and personal life have taken a heavy toll on my free time to write and let alone, read the economic news in detail as I like it. Nevertheless, much of that has been taken cared … Continue reading A Quick Recap of What Has Happened in the U.S. Economy
The Bureau of Labor and Statistics reported today that the Consumer Price Index dropped 0.3%, the first time in 13 months to be exact (February 2016). The CPI is an indicator that measures the weighted average of a basket of goods and services. This comes after a small increase of 0.1% in February. One might … Continue reading The Consumer Price Index Drops for the First Time in Over a Year.
The CBO(Congressional Budget Office) released their March 2017 10-year budget and economic projections and let me tell you, it does not look good. As of right now, 77% for the federal debt is held by the public. The CBO states that "if current laws generally remained unchanged, the Congressional Budget Office projects, growing budget defictis … Continue reading Would You Like More Debt? If so, Then You Are in Luck.
Yesterday on March 29, 2017, a day that will live in infamy, President Trump, while surrounded by coal miners and his EPA administrator, Scout Pruit, signed an executive order to cut climate change regulations that were put in place by President Barack Obama. Okay, maybe I am being a little over dramatic...or am I? He … Continue reading Coal Gets the Green Light by President Trump.
The Department of Commerce released their February report of durable good orders today and it looks like we are heading in the right direction. First, lets explain "durable goods." Durable goods are goods that are meant to last three or more years and do not have to be purchased on a regular basis. This means that … Continue reading The Durable Goods Report is In!
Lets try to make this nice and simple. I'll be honest. I have been following economic indicators since my college days and for some unknown reason, I have not come across this indicator. This is no ordinary economic indicator either. The Chicago Fed National Activity Index (CFNAI) is released monthly and is the weighted average of … Continue reading Chicago Fed National Activity Index. What is it and how important is it?
The Federal Open Market Committee ended its two day meeting today and has decided to increase the Federal Funds Rate to 0.75% form 0.50%. A relatively small change but still on track for what the Federal Reserve wants for their long term goal. Janet Yellen, Chair of the Federal Reserve, also mentioned three more possible rate … Continue reading The Fed Has Spoken. The Rate Goes Up
In December of 2016, the Federal Reserve raised the Federal Funds Rate rate by 0.25% for the first time in over a year, which is still a historic low, to a rate of 0.50%. The Federal Funds Rate is the interest rate banks at which banks charge each other when giving overnight loans to one another. Banks … Continue reading Rate Up Tick Likely? Federal Open Market Committee Meeting Begins Today