Inflation Archives

Fed leaves key rate unchanged as it awaits the impact of tariffs and Trump again scolds Powell

WASHINGTON (AP) — The Federal Reserve kept its key rate unchanged Wednesday as it waits for additional information on how tariffs and other potential disruptions will affect the economy this year. The Fed’s policymakers signaled they still expect to cut rates twice this year, even as they also project that President Donald Trump’s import duties will push inflation higher. They also expect growth to slow and unemployment to edge up, according to their latest quarterly projections. Fed policymakers had cut their rate three times late last year but have since have been on hold.… Continue Reading

Americans increased spending tepidly last month as anxiety over the economy takes hold

WASHINGTON (AP) — U.S. shoppers stepped up their spending just a bit in February after a sharp pullback the previous month, signaling that Americans are shopping more cautiously as concerns about the direction of the economy mount. Retail sales rose just 0.2% in February, a small rebound after a sharp drop of 1.2% in January, the Commerce Department said Monday. Sales rose at grocery stores, home and garden stores, and online retailers. Sales fell at auto dealers, restaurants, and electronics stores. The small increase suggests Americans may be growing more wary about spending as the stock market has plunged and President Donald Trump’s tariff threats and government spending cuts have led to widespread uncertainty among consumers and businesses.… Continue Reading

Stocks’ sell-off worsens as Wall Street wonders how much pain Trump will accept for the economy

NEW YORK (AP) — Wall Street’s sell-off is worsening. The S&P 500 fell 2.2% Monday as worries build about how much pain President Donald Trump is willing to endure on the economy in order to get what he wants. The Dow Jones Industrial Average dropped 530 points, and the Nasdaq composite sank 3.6%. The losses follow the worst week for U.S. stocks since September on concerns that on-and-off-again tariffs will either hurt the economy directly or create enough uncertainty to freeze it. Elon Musk’s Tesla fell to one of the market’s sharpest losses, as did airlines and other companies that need U.S. shoppers feeling confident enough to spend.… Continue Reading

Egg prices could jump another 41% this year, USDA says, as Trump’s bird flu plan unveiled

WASHINGTON (AP) — The Trump administration believes a renewed emphasis on biosecurity can help in the battle against bird flu and ease egg prices, but the Agriculture Department predicts the current record prices are going to get much worse this year. It’s also not clear how much more farmers can do to keep the virus out. Agriculture Secretary Brooke Rollins offered the first new details about her bird flu plan Wednesday. But USDA predicted this week that egg prices will soar more than 41 percent this year on top of the record average price of $4.95 per dozen.… Continue Reading

As egg prices soar, Trump administration plans new strategy to fight bird flu

MINNEAPOLIS (AP) — With egg prices soaring, the Trump administration is planning a new strategy for fighting bird flu that stresses vaccinations and tighter biosecurity instead of killing off millions of chickens when the disease strikes a flock. The director of the National Economic Council said on CBS’ “Face the Nation” that officials are moving away from the standard practice of destroying all the birds on a farm when an infection is detected. The culling of millions of chickens per month has caused egg prices to skyrocket. Some retailers are rationing sales. The official, Kevin Hassett, says the administration plans to announce further details this week.… Continue Reading

Stock market today: Wall Street ticks higher after encouraging inflation data

NEW YORK (AP) — Most U.S. stocks are rising following an encouraging update on inflation, but drops for Eli Lilly and some other influential companies are keeping indexes in check. The S&P 500 rose 0.1% Tuesday, with roughly 70% of the stocks in the index higher. The Dow Jones Industrial Average added 134 points, and the Nasdaq composite was close to flat. Treasury yields were relatively steady in the bond market after a report showed inflation at the U.S. wholesale level wasn’t as high last month as economists expected. Oil prices gave back some of their big gains from recent weeks.… Continue Reading

How the stock market defied expectations again this year, by the numbers

NEW YORK (AP) — What a wonderful year 2024 has been for investors. U.S. stocks ripped higher and carried the S&P 500 to records as the economy kept growing and the Federal Reserve began cutting interest rates. The benchmark index posted its first back-to-back annual gains of more than 20% since 1998. The year featured many familiar winners, such as Big Tech, which got even bigger as their stock prices kept growing. But it wasn’t just Apple, Nvidia and the like. Bitcoin and gold surged and “Roaring Kitty” reappeared to briefly reignite the meme stock craze.… Continue Reading

Stock market today: Wall Street ends little changed after giving up a big morning gain

NEW YORK (AP) — U.S. stocks are stabilizing following one of their worst days of the year. The S&P 500 rose 0.2% Thursday to recover some of its loss from Wednesday, when the Federal Reserve said it may deliver fewer cuts to interest rates next year than earlier thought. The Dow Jones Industrial Average added 136 points, and the Nasdaq composite rose 0.3%. The company behind Olive Garden helped lead the market higher after delivering stronger profit for the latest quarter than analysts expected. Treasury yields were mixed after reports showed the overall economy and the job market may be stronger than expected.… Continue Reading

Stock market today: Wall Street sinks after Fed signals fewer rate cuts next year. Dow drops 1,100

NEW YORK (AP) — U.S. stocks sank to their second-worst loss of the year after the Federal Reserve signaled that it may deliver fewer interest rates cuts in 2025 than earlier thought. The S&P 500 dropped 2.9% Wednesday to pull further from its all-time high set a couple weeks ago. The Dow Jones Industrial Average sank more than 1,100 points, and the Nasdaq composite dropped 3.6%. Fed officials released projections showing they’re penciling in just two cuts to interest rates next year, instead of the four they were projecting a few months ago. Treasury yields ramped higher to add pressure on the stock market.… Continue Reading

Federal Reserve cuts its key rate by a quarter-point but envisions fewer reductions next year

WASHINGTON (AP) — The Federal Reserve cut its key interest rate by a quarter-point — its third cut this year — but also signaled that it expects to reduce rates more slowly next year than it previously envisioned, largely because of still-elevated inflation. The Fed’s 19 policymakers projected that they will cut their benchmark rate by a quarter-point just twice in 2025, down from their previous estimate in September of four rate cuts. Their new quarterly projections suggest that consumers may not enjoy much lower rates next year for mortgages, auto loans, credit cards and other forms of borrowing.… Continue Reading