BOE warns of near-term squeeze on consumers as result of Brexit

The Bank of England has warned households that living standards will fall this year as the effect of the Brexit vote works its way through to higher prices and meagre pay deals. Presenting a sober assessment of the economic outlook just weeks before the general election on 8 June, the Bank’s governor Mark Carney predicted living standards could start to recover in 2018 but , in the meantime, inflation would be higher than pay growth this year making it a “more challenging time” for households…

U.S. jobless claims unexpectedly falls, producer prices up 0.5%

New applications for U.S. jobless benefits unexpectedly fell last week while producer prices rebounded strongly in April, pointing to a tightening labor market and rising inflation that could spur the Federal Reserve to raise interest rates in June. Labor market strength was also underscored by a sharp drop in the number of Americans on unemployment rolls to a 28-1/2-year low in the final week of April…

Fed expected to hold rates at 1.00%; Investors see June rate hike

The U.S. Federal Reserve is expected to hold interest rates steady at its meeting this week as it pauses to parse more economic data but may hint it is on track for an increase in June.
The central bank is scheduled to release its policy decision at 2 p.m. EDT (1800 GMT) on Wednesday at the conclusion of its two-day meeting. Fed Chair Janet Yellen is not due to hold a press conference…

Key Facts For The Upcoming FOMC Meeting

The Fed is not likely to hike rates yet again, at least not in the immediate meeting after the March rate hike,  that is, of course, the consensus; however, considering how much these so-called “economists” have gotten wrong over the past few years, if it were up to me, I’d say anything goes, although the […]

U.S. factory activity cools slightly in April; March inflation falls

U.S. factory activity slowed in April while consumer spending was unchanged in March and a key inflation measure recorded its first monthly drop since 2001, but economists still expect an interest rate increase in June as the labor market tightens. The weak reports on Monday came ahead of the Federal Reserve’s two-day policy meeting on Tuesday. The U.S. central bank is not expected to raise interest rates at the end of the meeting on Wednesday. The reports did little to change expectations of a rate hike in June…

Inflation puts the brakes on Britain’s economic activity

Official GDP estimate – due on Friday – will reflect how weaker pound has pushed up the cost of imported goods

Britain’s economy cooled considerably in the first three months of the year as higher inflation put a squeeze on disposable incomes, official figures are expected to show this week.

The economy shrugged off the shock of the Brexit vote last June and has been surprisingly resilient, with growth rates of 0.5% in the third quarter of 2016 and 0.7% in the final quarter.

Continue reading…

U.S. housing starts slide 6.8% in March, manufacturing output drops

U.S. homebuilding fell in March after unseasonably mild weather buoyed activity in February and manufacturing output dropped for the first time in seven months, further indications that economic growth braked sharply in the first quarter. Coming on the heels of data last week showing the second monthly decline in retail sales in March as well a decrease in consumer prices, Tuesday’s dour reports could reduce prospects of a Federal Reserve interest rate increase in June…

U.S. jobless claims slip less than expected for week ending March 25

The number of Americans filing for unemployment benefits fell less than expected last week, suggesting some loss of momentum in a labor market that continues to tighten. Initial claims for state unemployment benefits slipped 3,000 to a seasonally adjusted 258,000 for the week ended March 25, the Labor Department said on Thursday. The prior week’s data was unrevised…

Oil prices slip to near 1-week low despite OPEC output cut extension

Oil prices fell on Tuesday, with U.S. crude dropping to its lowest since November, as concerns about new supplies overshadowed the latest talk by OPEC that it was looking to extend output cuts beyond June. The decline also came ahead of the release of U.S. crude inventory data later Tuesday and on Wednesday that is expected to show a crude stock build of 2.8 million barrels for last week, according to a Reuters poll…

Why the Bank of England won’t even considers higher rates

Savers lost one of their last hopes for an interest rate rise when Bank of England rate-setter Kristin Forbes announced she would be heading back to her home in Massachusetts in June. Forbes, a US academic who craves a return to the “economic normality” of 4%-5% base rates, has consistently called for an increase, though never actually voted for one…

U.S. inflation expected at 3.0% in January, highest level since mid-2015

A measure of U.S. inflation expectations rose for a second straight month in January to its highest level since mid-2015, according to a Federal Reserve Bank of New York survey released on Monday that reinforced the view that interest rates would keep climbing. The survey of consumer expectations, an increasingly influential gauge of prices for the U.S. central bank, found that year-ahead inflation expectations increased to 3.0 percent, from 2.8 percent in December and 2.5 percent in November…

‘Straightforward’ Brexit bill to be introduced on Thursday: Secretary of State exiting the EU

David Davis has told parliament the government will publish a “straightforward” Brexit bill within days after a significant ruling by the supreme court. The secretary of state for exiting the EU said he would respond quickly to judges’ demands to give MPs and peers a vote in parliament but warned that the “point of no return” for Brexit had already been passed…

Newsletter

Zero spam.