There has been much discussion in the media recently about how the Federal Reserve (the Fed) has successfully managed to direct the U.S. economy to a soft landing. But what does that actually mean and, ultimately, how does that impact investors? Here, we find out. What a soft landing looks like In economic terms, [...]
Last week, the Fed made a 0.5% cut to its rate. Its decision meant that one of the most highly anticipated monetary policy decisions was finally made. In fact, it came many months later than the market had thought; at the end of last year, investors believed a cut would arrive as soon as [...]
It’s looking increasingly likely that the much anticipated Federal Reserve rate cut will happen this September. The Fed’s chair, Jerome Powell, recently gave a speech at Jackson Hole highlighting the cooling jobs market and downward payroll revision in addition to his confidence in inflation moving towards the Fed’s 2% target. Taken together, these factors [...]
Are you feeling the economic uncertainty in the air? You're not alone. Recent data on consumer confidence paints a complex picture of the current economic landscape, with implications that could significantly impact your investment decisions. The latest Consumer Confidence Index has dipped to 100.4 in June from 101.3 in May. While this might seem [...]
U.S. Retail sales figures were released this week and revealed yet another sign that consumer sentiment is cooling. While sales did grow, up 0.1% month-over-month in May 2024, it was still below forecasts of 0.2%. Importantly, the figure also follows April’s figures, which showed a decline in sales. Taken together, this would indicate that [...]
When it comes to investing, one of the most crucial metrics you need to understand is the Consumer Price Index (CPI) data. With the upcoming CPI release this week, it's important to grasp what this data is, how it impacts the market, and why it matters to your investment strategy. Let's explore CPI in [...]
In a recent turn of events, the inflation narrative has taken center stage, prompting a closer examination of its implications on Federal Reserve policy. Let's delve into the intricacies of these developments and their potential ramifications. The Commerce Department's personal consumption expenditures (PCE) index revealed a notable uptick in consumer prices, registering a 2.7% [...]
The market came under pressure this week following Fed Chair Jerome Powell’s comments about inflation that were less than enthusiastic. While speaking at a policy forum focused on US-Canada economic relations, Powell articulated that the first quarter’s sticky inflation data means market-rate cuts will happen later than initially hoped. The Fed’s benchmark interest rate [...]
Monday was momentous because of the eclipse boosting hopes and dreams of disinflation, and Wednesday started with a downer because of higher-than-expected CPI data. The inflationary data came in hot, with every reading coming in above estimates, sending the market into a significant dip. Let’s dive into anticipation, the reaction, what it means, and [...]
