Page 20 - Us Economy

Biden will address budget, debt agreement from Oval Office Friday evening

President Joe Biden planned to discuss the contentious, just-passed budget deal in a speech to the nation on Friday night, ready to sign the agreement averting the country's first-ever government default, which would have sent shock waves through the US and global economies. The measure was approved late on Thursday night after passing the House in yet another late session the night before. After days of default threats, the debt limit-budget agreement was worked out by Biden and House Speaker Kevin McCarthy, giving Republicans some of their spending-cut demands but holding the line on major Democratic priorities. No one gets everything they want in a negotiation, but make no mistake: This bipartisan agreement is a big win for our economy and the American people, Biden said in a statement on Thursday. Biden's speech on Friday, scheduled for 7 pm EDT, will be the most extended remarks from the Democratic president on the compromise. He largely remained quiet publicly during ...

US Federal Reserve seen skipping June, maybe hiking in July after jobs data

Traders now see about a one-in-three chance that the Fed will deliver an 11th straight rate increase at its June 13-14 meeting, up from about one-in-four before the Labor Department report

US job growth beats expectations in May; unemployment rate rises to 3.7%

Nonfarm payrolls increased by 339,000 jobs last month, the Labor Department said in its closely watched employment report on Friday

US manufacturing dips for seventh straight month in May; employment rises

The Institute for Supply Management (ISM) said on Thursday that its manufacturing PMI fell to 46.9 last month from 47.1 in April

Recession already here, as earnings shrink and Wall St fears worse to come

The latest round of corporate earnings is leaving Wall Street with a confounding sense of relief and lingering anxiety. Companies are in the midst of an earnings recession", meaning profits have contracted for two straight quarters, starting with a 4.6 per cent drop at the end of 2022. Profits for S and P 500 companies shrank just over 2 per cent last quarter, compared with forecasts of a 6.7 per cent drop. That brought some relief to Wall Street that the quarter wasn't as bad as it could have been. But, analysts also expect more pain ahead. Analysts polled by FactSet now expect a 6.4 per cent contraction for profits in the current quarter. That shows just how worried analysts are about the impact from inflation on businesses and consumers. Fears about a recession continue to weigh on the broader economy and are a big factor in corporate and independent forecasts for company profits. With a recession still looming, it's unlikely that earnings have hit rock bottom, said Michael Aro

Opportune time to diversify internationally as US benchmarks recover

Enter for the long haul as the US economy and market could witness turbulence in the months ahead

Explained: What is the US debt ceiling deal and why it's important?

Currently, the ceiling is roughly equal to 120% of the country's annual economic output

US Federal Reserve 'pause' on rate hikes in doubt after strong US data

Inflation by the Fed's preferred gauge actually accelerated to 4.4% from a year ago, the report showed

US consumer spending beats expectations in April; inflation picks up

The PCE price index increased 0.4% in April after rising 0.1% in March. In the 12 months through April, the PCE price index increased 4.4% after advancing 4.2% in March

US manufactured capital goods demand unexpectedly rebound in April

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, surged 1.4% last month, the Commerce Department said on Friday

As US credit risk looms, ex-S&P officials see 2011 downgrade as vindicated

That downgrade came days after Washington narrowly averted a default, but S&P went ahead, cutting the U.S. pristine "AAA" to "AA-plus," citing heightened political polarization

Debt ceiling talks teeter on brink, as lawmakers leave town without a deal

House Republicans are pushing debt ceiling talks to the brink, displaying risky political bravado as they prepare to leave town Thursday for the holiday weekend just days before the UScould face an unprecedented default that could hurl the global economy into chaos. Speaker Kevin McCarthy said he's directed his negotiating team to work 24/7 to solve this problem. Arriving at the Capitol, McCarthy, R-Calif., said that every hour matters in talks with President Joe Biden's team as they work toward a budget deal. Republican are demanding spending cuts the Democrats oppose, and McCarthy said a deal could come together at any time. But it's clear the Republican speaker who leads a Trump-aligned party whose hard-right flank lifted him to power is now staring down a potential crisis. Lawmakers are tentatively not expected back at work until Tuesday, just two days from June 1, when Treasury Secretary Janet Yellen has said the US could start running out of cash to pay its bills and face a

US weekly jobless claims rise moderately; Q1 GDP growth revised up

Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 229,000 for the week ended May 20, the Labor Department said

US economic growth for last quarter revised up to 1.3% annual rate

The US economy grew at a lackluster 1.3 per cent annual rate from January through March as businesses wary of an economic slowdown trimmed their inventories, the government said on Thursday, a slight upgrade from its initial estimate. The government had previously estimated that the economy grew at a 1.1 per cent annual rate last quarter. The Commerce Department's revised measure on Thursday of growth in the nation's gross domestic product the economy's total output of goods and services marked a deceleration from the second half of 2022. Despite the first-quarter slowdown, consumer spending, which accounts for around 70 per cent of America's economic output, rose at a healthy pace. The steady weakening of economic growth is a consequence of the Federal Reserve's aggressive drive to tame inflation, with 10 interest rate hikes over the past 14 months. Across the economy, the Fed's rate increase have elevated the costs of auto loans, credit card borrowing and business loans. With

US business activity hits 13-months high, by growth in services sector: S&P

S&P Global said on Tuesday its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, rose to a reading of 54.5 this month

No deal has yet been reached, says Joe Biden after debt ceiling talks

US President Joe Biden and Republican House Speaker Kevin McCarthy have called their latest talks on the debt ceiling productive, but no deal has yet been reached

War rooms and bailouts: US banks, Fed are preparing for a US default

War rooms and bailouts: How banks and the Fed are preparing for a US default - and the chaos expected to follow

Total Covid-19 cost to US economy to reach $14 trn by 2023 end: Research

Workplace absences, and sales lost due to the cessation of brick-and-mortar retail shopping, air travel and public gatherings, contributed the most

US Treasury Secretary Yellen calls CEOs with warning on US debt ceiling

US Treasury Secretary Janet Yellen has been calling CEOs and business leaders to discuss the consequences of brinkmanship around the debt ceiling

US job openings decline to 9.6 million in March, lowest since 2021

US job openings fell in March to the lowest level in nearly two years, a sign that the American labour market is cooling in the face of higher interest rates. Employers posted 9.6 million vacancies in March, down from nearly 10 million in February and lowest since April 2021. The Labour Department's Job Openings and Labour Turnover Summary, out Tuesday, showed that layoffs rose to 1.8 million, the highest level since December 2020. The number of Americans quitting their jobs a sign they have confidence they can find better pay or working conditions elsewhere dropped to 3.9 million, lowest since May 2021. The American job market is strong but losing momentum. The Federal Reserve has raised its benchmark interest rate nine times in just over a year in a bid to rein in inflation that last year hit a four-decade high. And higher borrowing costs are taking an economic toll. A hot job market can push up wages and overall prices. Overall the JOLTS report shows a historically tight lab