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Economic News and Analysis

The latest news and analysis about the health of the US economy.

Fed's Kugler, Daly say job not done on inflation

(Reuters) -Two Federal Reserve policymakers on Saturday said they feel the U.S. central bank's job on taming inflation is not yet done, but also signaled they do not want to risk damaging the labor market as they try to finish that job. The remarks, from Governor Adriana Kugler and San Francisco Fed President Mary Daly, highlight the delicate balancing act facing U.S. central bankers this year as they look to slow their pace of rate-cutting. The Fed lowered short-term rates by a full percentage point last year, to a current range of 4.25%-4.50%.

Reuters 5 hours ago

December US Jobs Report to Cap Year of Moderate Hiring

(Bloomberg) -- US employers probably tempered their hiring last month to wrap up a year of moderating yet still-healthy job growth that economists expect to carry on in 2025.Most Read from BloombergIs This Weird Dome the Future of Watching Sports?NYPD Seeking Gunmen After 10 People Wounded Outside Queens VenueNYC Congestion Pricing to Take Effect After Years of DelaysBurned-Out Parents Need Better Public SpacesDetroit’s Michigan Central Is the Building Revival Story of 2024Payrolls increased 160

Trump tariffs would shrink the federal deficit, but also the economy, CBO says

The CBO estimated that more tariff revenue would help shrink the federal budget deficit by $2.7 trillion from fiscal years 2025 to 2034.

Biden to Ban New Oil Drilling Over Vast Stretch of US Atlantic, Pacific Waters

(Bloomberg) -- President Joe Biden is set to order a ban on new offshore oil and gas development across some 625 million acres of US coastal territory, ruling out the sale of drilling rights in Atlantic and Pacific waters as well as the eastern Gulf of Mexico.Most Read from BloombergIs This Weird Dome the Future of Watching Sports?NYPD Seeking Gunmen After 10 People Wounded Outside Queens VenueNYC Congestion Pricing to Take Effect After Years of DelaysBurned-Out Parents Need Better Public Spaces

Minimum wage just went up in these 21 states

Workers across 21 states welcomed the new year by seeing their hourly minimum wages rise.

Minimum wage just went up in these 21 states

Workers across 21 states welcomed the new year by seeing their hourly minimum wages rise.

New jobless claims data shows labor market slowdown is 'gradual'

Fresh weekly jobless claims data showed that while the labor market has cooled in 2024, layoffs remain low.

Wall Street is concerned about an inflation resurgence in 2025

Inflation has remained stubbornly elevated. Here's why economists are concerned sticky price increases could continue next year.

Americans are less confident about where the US economy is headed

The potential impact of President-elect Donald Trump's policies remained top of mind for consumers in December, per the Conference Board.

Wall Street reevaluates 'higher for longer' rates post Fed meeting: What to know this week

Investors will contend with a host of challenges, from turmoil in Washington to a more hawkish stance from the Fed.

Why a housing market 'thaw' never came in 2024

Wall Street analysts had hoped the housing market would show signs of life in 2024. Instead, it remained stagnant: Sales of previously owned homes are poised to set the record for the worst year since 1995 for the second year in a row.

Fed rate cut dissenter Beth Hammack says 'there is more work to do on inflation'

The lone dissenter to the Federal Reserve’s rate cut this week said she voted against the move because "there is more work to do on inflation," noting that she preferred to pause given the strength of the US economy.

Fed's preferred inflation gauge shows price increases fell in November

November's Personal Consumption Expenditures report is the latest data point that will shape future monetary policy.

Why Powell says inflation is still on track: Morning Brief

Fed Chair Powell tried to make sense of contradictory storylines and conflicting data, delivering a final watchword: caution.

Jerome Powell makes clear the Fed is already thinking about life under Trump

Federal Reserve Chair Jerome Powell hinted Wednesday that the economic policies of President-elect Donald Trump are starting to become top of mind for the central bank.

Fed's Kugler says data will drive Fed policy choices amid uncertainty

Federal Reserve Governor Adriana Kugler said on Friday the U.S. central bank is uncertain about what the economy will deliver in 2025 and will let upcoming economic data drive the course of monetary policy. In light of Fed forecasts last month for fewer interest rate cuts in 2025, "there is a view that we can take our time, to slow down" and be more "gradual" while watching the data to see if sticky inflation pressures start to ease again, Kugler said in a CNBC interview. If the resilient job market starts to lose steam, however, "we would be ready to act in a different direction" with monetary policy, she said.

Fannie Mae, Freddie Mac shares surge after federal agencies reveal privatization path

(Reuters) -Shares of Fannie Mae and Freddie Mac, the mortgage giants under U.S. government control since 2008, surged to multi-year highs on Friday after federal agencies revealed a framework for their "orderly" release from conservatorship. The U.S. Treasury Department and the Federal Housing Finance Agency (FHFA) said on Thursday they had amended their agreements with the companies to help ensure that their eventual exit from conservatorship is not disruptive. Exiting conservatorship would mark a key milestone for Fannie and Freddie, which were created by the Congress to support the housing market by ensuring affordable mortgage financing, but crumbled after being severely bruised during the 2008 financial crisis.

Barkin Says He Prefers Fed Keep Rates Restrictive for Longer

(Bloomberg) -- Federal Reserve Bank of Richmond President Tom Barkin said there are still upside risks to inflation and growth, underscoring his preference to keep interest rates restrictive for longer.Most Read from BloombergIs This Weird Dome the Future of Watching Sports?NYPD Seeking Gunmen After 10 People Wounded Outside Queens VenueNYC Congestion Pricing to Take Effect After Years of DelaysBurned-Out Parents Need Better Public SpacesDetroit’s Michigan Central Is the Building Revival Story o

US jobs report poses first big stocks test of 2025

The stock market faces its first major test of the year in the coming week, with investors counting on the U.S. jobs report to show a stable but not overheated economy that underpins expectations for equity gains in 2025. Prospects for a third straight standout year hinge in part on the strength of the economy, with labor market data among the most important reads into the economy's health. "Investors are going to want to see confirmation that labor trends remain solid, which means the economic outlook probably remains firm," said Anthony Saglimbene, chief market strategist at Ameriprise Financial.

Fed policy may need to stay restrictive for longer due to inflation risk, Barkin says

BALTIMORE (Reuters) -The U.S. central bank's benchmark policy rate should stay restrictive until it is more certain that inflation is returning to its 2% target, Richmond Federal Reserve President Thomas Barkin said on Friday. "I think there is more upside risk than downside risk" to inflation, given the economy's continued strength and the possibility of renewed wage and other price pressures, Barkin told the Maryland Bankers Association in Baltimore. Though Barkin is not a voting member of the Fed's rate-setting committee this year, his comments reflect a developing debate inside the central bank about when to cut interest rates again and how to account for an increasingly uncertain economic environment as President-elect Donald Trump prepares to take power again later this month.

Gold Declines as Traders Await Key US Economic Data

(Bloomberg) -- Gold erased gains as traders geared up for US economic data that may help them assess the outlook for interest rates in the year ahead. Most Read from BloombergIs This Weird Dome the Future of Watching Sports?NYPD Seeking Gunmen After 10 People Wounded Outside Queens VenueNYC Congestion Pricing to Take Effect After Years of DelaysBurned-Out Parents Need Better Public SpacesDetroit’s Michigan Central Is the Building Revival Story of 2024Bullion fell 0.3% to $2,654 an ounce, trimmin