The U.S. economy added 517,000 jobs in January, more than doubling Wall Street expectations and turning up its nose at prognosticators of an imminent recession. The unemployment rate dropped to 3.4 percent, the lowest level since 1969. Analysts were expecting it to move in the opposite direction, ticking up to 3.6 percent. The monthly gain…
Author: Tobias Burns
US adds stunning 517K jobs to start 2023
The U.S. labor market clocked a shockingly strong month in January, adding 517,000 jobs and dipping down to 3.4 percent unemployment, according to data released Friday by the Labor Department. The numbers blow past expectations. Analysts were projecting an increase around 185,000 jobs and for the unemployment rate to edge up to 3.6 percent. In…
Five things from the Fed rate hike that raised eyebrows
The Fed raised interest rates by 0.25 percentage points on Wednesday to bring the federal funds rate to a range of 4.5 to 4.75 percent, marking its eighth straight rate hike since last March as the central bank continues its fight against inflation. The latest hike is the smallest since the Fed started raising interest…
Fed raises interest rates in smallest hike since March
The Federal Reserve raised interest rates by 0.25 percentage points on Wednesday at its first meeting of the year, its eighth straight rate hike since it began a program of tightening borrowing costs last year in an effort to bring down inflation. It’s the smallest rate hike since last March, coming off a 50 basis…
Job openings jump in December as labor market stays strong
Job openings increased to 11 million in December from 10.4 million in November for an increase of 5.5 percent as the U.S. labor market continues to show signs of strength even as concerns about a recession loom. The data released Wednesday by the Labor Department brings the number of unemployed persons per job opening down…
Why the Fed faces new risks in its inflation fight amid recession fears
The Federal Reserve is expected to raise interest rates by a quarter-percentage point at its meeting on Wednesday, entering a high-stakes chapter in its battle against high inflation. The central bank is on track to issue its smallest rate hike since March 2021, when the Fed began aggressively boosting borrowing costs and slowing the economy…
What recession? Inflation, GDP offer hope for ‘soft landing’
Perhaps a 2023 recession can be avoided after all. Consistently falling prices alongside a stronger-than-expected fourth-quarter gross domestic product (GDP) and next week’s anticipated less aggressive interest rate hike from the Federal Reserve are changing economists’ tune and renewing hopes about the overall health of the economy. The personal consumption expenditures price index (PCE) cooled…
Resilient US economy grows 2.1 percent in 2022
The U.S. economy powered through high inflation, rising interest rates and an energy shock to grow at a solid pace over the course of 2022, according to data released Thursday by the Commerce Department. U.S. gross domestic product (GDP) grew 2.1 percent last year and at an annualized rate of 2.9 percent during the fourth…
Why the IRS says to expect smaller tax refunds this year
The IRS is warning taxpayers at the opening of the 2023 tax filing season that they should expect smaller refunds due to pandemic relief measures that have been allowed to expire. A big reason is that there were no stimulus payments from the government to people to help get them through the pandemic in 2022….
Here’s what you need to know about the GOP bill to abolish the tax code
House conservatives are breathing new life into an old proposal to do away with income taxes, payroll taxes, estate taxes and even the IRS itself in favor of a supersized sales tax that would account for nearly all government revenues. Versions of the far-reaching plan have been around for decades, and with Democrats controlling both…