Like the Fed, corporations also eagerly await economic data

May 22, 2024
This year, bigger-than-expected inflation reports are playing a role in determining when companies decide to borrow money by issuing bonds.
"A company is not going to come to market with a new bond deal unless they feel reasonably confident that that bond deal is going to go pretty well," says Winnie Cisar with CreditSights. Above, traders on the New York Stock Exchange floor.
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Inflation and politics have always been connected

May 21, 2024
Rising costs have long been a concern for Americans. What's changed is how the government intervenes in prices, economist Carola Binder writes.
"The return of inflation was not only, or even primarily, an academic concern. It was, even more, a social and a political one," economist Carola Binder writes in her book "Shock Values."
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When assessing inflation, it's not just the data, it's also the narrative

May 17, 2024
The CBO data show purchasing power rising across all income groups, but the numbers reflect averages, and individuals' experiences vary.
According to the Congressional Budget Office, purchasing power went up across all income groups because incomes grew faster than prices between 2019 and 2023.
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Retail sales figures suggest consumers are pulling back

May 15, 2024
The latest figures, for April, suggest that rising prices, high interest rates and depleted pandemic savings may finally be weighing on spending.
In surveys, consumers report they’re increasingly worn down by inflation, said Morning Consult's Claire Tassin.
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Why isn't the cost of borrowing money included in the consumer price index?

May 15, 2024
Loans are a big cost, but they would muddle the data in the CPI. Fed rate hikes would essentially create inflation, despite their intention.
Borrowing is a major expense for many Americans. One example is the interest on car loans.
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Consumers don't expect their incomes to grow as fast as prices

May 13, 2024
Consumers forecast inflation at 3.3% this time next year and are less confident that their earnings will rise as much as they had expected.
Consumers expect to spend more on the need-to-haves, like housing and food. Discretionary want-to-haves in their budgets may be squeezed.
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Gen Z is taking on more credit card debt

May 9, 2024
The credit bureau TransUnion is out with a report showing that borrowers aged 22 to 24 are carrying an average of $2,834 in credit card debt — about a quarter more than millennials in the same age range a decade ago.
Adjusted for inflation, members of Gen Z ages 22 to 24 are carrying roughly a quarter more debt than millennials in the same age range a decade ago.
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For public good, not for profit.

AARP survey shows many older adults worry about financing retirement

May 6, 2024
More than 60% of people over 50 are worried they won’t have enough money to live on in retirement, which is more than last year, according to a recent survey from AARP.
About a third of people 50 and older who are still working have saved less than $10,000 toward retirement.
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As consumer sentiment survey is released, differences emerge at different wealth levels

Apr 26, 2024
Inflation continues to be a key factor but richer folks have greater protection from its effects.
Wealthy and low-income households are not experiencing inflation the same way, says Kayla Bruun with Morning Consult.
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U.S. GDP grew by 1.6% in the first quarter, slower than expected

Apr 25, 2024
This marks the end of a six-quarter streak of GDP growth of 2% or more. But the downshift might not be cause for worry just yet.
The good news: consumer spending, the force that’s been buoying economic growth for months, still looks solid. The bad news: business leaders aren’t feeling quite as confident.
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