The personal consumption expenditures (PCE) price index, a key indicator of US inflation, rose by 2.1% in September, down from 2.2% in August. This is the lowest level since 2021 and is seen as a success for the Federal Reserve, which was aiming to reduce inflation to 2%. In a move from its previous stance that price growth would be “transitory”, the Federal Reserve raised interest rates to a 20-year high before beginning to cut them again in September. Despite this positive development, the high cost of living continues to be a hot topic ahead of the US presidential election. Furthermore, almost half of US citizens surveyed in a recent poll wrongly believe that the country is in recession.
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The Federal Reserve’s recent significant cut in its key rate is making waves, not just in the economy but also in the minds of regular citizens like me. It signifies a shift in focus from fighting inflation to prioritizing economic growth, and the implications of this move are far-reaching.
The timing of this rate cut, just weeks before a pivotal presidential election, introduces an interesting dynamic. It could potentially influence economic conditions as Americans head to the polls, with varying interpretations from different political camps. However, the tangible impact comes in the form of lower borrowing costs for mortgages, auto loans, and credit cards.… Continue reading
The US economy added an impressive 353,000 jobs in January, marking a strong start to 2024. As I scroll through Reddit posts, I see many people expressing frustration and uncertainty about finding employment. However, it is important to dig deeper into the sectors that are experiencing significant growth.
One key sector that is contributing to the job surge is healthcare, with approximately 33% of the added jobs in this field. As someone who works in hospice care, I can attest to the constant need for healthcare professionals. In fact, I receive job offers almost every week, highlighting the high demand in this sector.… Continue reading
As a casual observer of the financial world, I have been closely following the recent signals from the Federal Reserve regarding interest rate cuts. It seems that many people were anticipating a decrease in rates due to the previous hike, but I believe this assumption was unfounded. The Fed is not going to lower rates just because businesses are dissatisfied; they will do so if they see a need based on the overall state of the economy.
Currently, the economy is still growing, consumers are spending, and unemployment remains low. Despite the interest rate being at 5% or higher, there haven’t been any significant negative effects on the economy.… Continue reading
John Q. Hosedrinker