Economics News Results

  • America's Employment Crisis Has Turned the Corner

    There are all kinds of reasons to doubt the accuracy of Friday's employment report. That doesn't mean the underlying message that the job market may have passed its nadir should be ignored. The big question now is how its recovery will develop.

  • Get ready for the Fed to deploy untested monetary policy plan in September, says analyst

    U.S. yield-curve control is likely to be paired with forward guidance. Get ready for the Federal Reserve to target bond yields as one of the many unprecedented measures the central bank has undertaken to support the economy. The Fed may shift to a policy of buying bonds to cap yields for short-dated maturities at fixed levels, says Mark Cabana at BofA Global Research who argues the move is likely to take place in September as the Fed looks to mitigate the risk of deflation over the...

  • America's Economy Is Healing Slowly

    The U.S. economy didn't deteriorate as badly in May as it did in April. That is a far cry from saying that it is getting better. The Institute for Supply Management on Wednesday said that its index for nonmanufacturing activity climbed to 45.4 last month from 41.8 in April.

  • St. Louis Fed researchers say negative interest rates may be needed for economic recovery

    Federal Reserve officials from Chair Jerome Powell on down have been pretty consistent in their scorn toward negative interest rates, even as the market briefly priced in the expectation that U.S. rates would fall below zero. That criticism takes two forms-- one, Fed officials say evidence doesn't show much effectiveness where they have been tried, and two, negative interest rates might throw markets, such as those for money markets, into turmoil. So it's notable, if not a signal of...

  • Factory orders fall sharply for second straight month in April

    Factory orders fell 13% in April, a slightly larger drop than the 11% decline in the prior month, the Commerce Department said Wednesday. Economists were expecting a 12% fall. Durable goods orders fell 17.7%, a bit worse than last week's initial reading of a 17.2% decline.

  • Euro tops $1.12 level for the first time since the middle of March

    The euro topped $1.12 for the first time in 11 weeks, extending the shift in the currency market amid optimism over economic reopenings across the globe. The euro traded at $1.1226 vs. $1.1168 on Monday. The New Zealand dollar and Australian dollar also rose against the greenback, as did the British pound which flirted with the $1.26 level.

  • The No. 1 thing Americans are spending their stimulus checks on -- even more than shopping at Costco, Walmart and Target

    'Americans are aware of how grim the near future could be'. Nearly one-third of people said they used their stimulus checks to pay bills, according to a survey released this week, another sign that Americans are struggling to make ends meet, particularly with more than 38 million people filing for unemployment since mid-March. Those bills-- including for cellphones, utilities, cable TV and rent-- are the No. 1 priority, even more than purchasing essentials and "relief spending" on apparel,...

  • Stimulus checks are a mere Band-Aid for Americans -- amid fears of an even bigger economic crisis than the Great Recession

    Economic impact payments would cover less than half of the average family's monthly expenses, a new study found. Nearly 160 million stimulus checks are already winding their way to millions of Americans. They're a key part of the government's $2.2 trillion CARES Act, but furloughed and laid-off workers say a maximum $1,200 payment is not nearly enough to see them through what some analysts say could be an even bigger economic crisis than the Great Recession.

  • The extra $600 Americans receive in weekly unemployment benefits ends in July -- how that could cost the U.S. more jobs

    For every dollar spent on unemployment insurance, there's a multiplier effect leading to a 1.64 increase in GDP, research shows. Two-thirds of Americans are receiving more money from unemployment benefits than they did from their jobs, largely because of a supplemental $600 weekly benefit that's part of the $2.2 trillion CARES Act. But decreasing those benefits could cost the country even more jobs on top of the historic 40 million jobs that have already been wiped away by the...

  • U.S. construction spending drops 2.9% in April

    Spending for U.S. construction projects dropped a smaller than expected 2.9% in April, the Commerce Department said Monday. Analysts polled by MarketWatch had forecast a 6.8% plunge due to the coronavirus pandemic. Residential construction sank 4.5% in April, but spending on construction projects outside the housing sector fell a much smaller 1.8%.

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