Opinion: Why are Americans so grumpy about the economy? They’ve never lost so much purchasing power in one year, as the stimulus dries up and inflation boils over

Opinion: Why are Americans so grumpy about the economy?  They’ve never lost so much purchasing power in one year, as the stimulus dries up and inflation boils over

If you want to know why Americans are so grumpy about the economy, let’s start with the fact that despite strong job growth and sizable increases in wages, their incomes are simply not keeping up with inflation. Americans just don’t feel poorer—they are poorer. In fact, they have never lost so much purchasing power in … Read more

UK economy teetering on the edge of recession, says Goldman Sachs

UK economy teetering on the edge of recession, says Goldman Sachs

The UK is teetering on the edge of recession, say economists at Goldman Sachs, as inflation-battered Britons curtail spending and the Bank of England raises interest rates. The bank’s economists Steffan Ball and Ibrahim Quadri forecast a 0.7% contraction for the second quarter and a 0.1% increase for the third quarter. (GDP data in the … Read more

S&P 500 falls for 3rd straight day after Powell says no guarantee of soft landing for US economy, JP Morgan warns of recession risk

S&P 500 falls for 3rd straight day after Powell says no guarantee of soft landing for US economy, JP Morgan warns of recession risk

US stock indexes end mixed Wednesday, as investors focused on remarks by central bankers and from corporate executives, while fretting that soaring inflation is damaging the world’s biggest economy. How did stock indexes do? The Dow Jones Industrial Average DJIA rose 82 points, or 0.3%, to end at 31,029.31. The S&P 500 SPX edged down … Read more

China’s Economic Recovery Is Limping Along

China’s Economic Recovery Is Limping Along

China’s economic performance isn’t looking strong, according to Beige Book. Hector Retamal/AFP/Getty Images Text size China’s economic performance in the second quarter isn’t looking strong, according to a strategist’s new report. Results for the three months ending this week will be officially released in July, but an early number-crunching assessment by China Beige Book argues … Read more

China’s Economic Recovery Looks Worse Than Expected, This Strategist Says.

China’s Economic Recovery Is Limping Along

Text size China’s economic performance isn’t looking strong, according to Beige Book. Hector Retamal/AFP/Getty Images China’s economic performance in the second quarter isn’t looking strong, according to a strategist’s new report. Results for the three months ending this week will be officially released in July, but an early number-crunching assessment by China Beige Book argues … Read more

Emerging Economies Must Engineer Recession to Survive Inflation

Emerging Economies Must Engineer Recession to Survive Inflation

Text size Street vendors offer food in downtown Santiago, on June 8, 2022. Annual inflation in Chile reached 11.5% in May, an first level in three decades and in spite of strong tax increases by the central bank to combat it. Martin Bernetti/AFP via Getty Images About the author: Nick Stadtmiller is an emerging markets … Read more

Fed looks ‘dead set’ on tightening financial conditions until the economy slows, warns BlackRock

Fed looks ‘dead set’ on tightening financial conditions until the economy slows, warns BlackRock

The Federal Reserve’s battle to get inflation down from a 40-year high likely means it will raise interest rates until the US economy slows, strategists at the BlackRock Investment Institute warned on Tuesday. “The Fed seems dead set on raising rates this year to levels that, in our view, would clearly slow the economy,” Jean … Read more

Stock market set for worst half-year performance since 1932. Recession threat will dictate 2nd half: Deutsche Bank

Stock market set for worst half-year performance since 1932. Recession threat will dictate 2nd half: Deutsche Bank

The S&P 500 officially hit bear market territory last week and, according to Deutsche Bank, is currently on track for its worst half-year performance since the Great Depression. With the large-cap benchmark SPX, +2.45% Having shed around 22.3% so far in 2022 — the biggest drop since 1932 (see chart below) — strategists at the … Read more

Fed’s Bullard says US economy should continue to grow in coming quarters

Fed’s Bullard says US economy should continue to grow in coming quarters

The US economy should continue to grow in the coming several months, said St. Louis Fed President James Bullard on Monday, playing down fear of a severe recession that some economists and market pros view as inevitable in the face of the central bank’s war against too-hot inflation. “On GDP growth, I think that the … Read more