The Consumer Price Index rose 0.1 percent in December from the previous month. The “core” inflation rate — excluding volatile food and energy prices — rose 0.3 percent month-to-month. That’s the largest increase since January 2017, and was higher than economists expected. But does it mean we’re beginning to see a serious uptick in inflation? […]
The Federal Reserve has two main jobs: maximize employment and keep prices stable. That second piece, stable prices, has meant the Fed tries to keep inflation at 2 percent. Former Fed Chair Ben Bernanke made that target the explicit goal about six years ago, but it’s been unofficial far longer than that. Lots of other […]
2017 was a good year for jobs. Over the past year, (November 2016 to November 2017, the latest figure available), unemployment’s fallen by half a percent to just 4.1 percent. And according to orthodox economics, that means we’re hovering around full employment. Basically, the model says: If unemployment falls lower, employers will be so desperate […]
President Trump is expected to announce who he’s nominating for chair of the Federal Reserve tomorrow. Current Chair Janet Yellen’s term ends in February. One thing will stay the same after Yellen leaves: the Fed’s dual mandate of balancing inflation and unemployment. Click the audio player above to hear the full story.
Inflation has been consistently lower than the Federal Reserve’s target of 2 percent. Fed Chair Janet Yellen highlighted this fact in recent congressional testimony. Most consumers and business owners would just as soon see inflation remain low: consumers can afford more goods and services without having to earn higher wages, and businesses never like to […]
The June employment report from the Bureau of Labor Statistics showed strong job growth – 222,000 – and a 0.1 percent rise in the unemployment rate to 4.4 percent, as more job-seekers entered the labor force. But the rise in average hourly earnings was anemic—up 0.2 percent month over month, 2.5 percent year over year. […]
