Page 21 - Us Economy

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

Millions of Americans may suffer if debt showdown not solved in 30 days

The jobs, benefits and financial security of millions of Americans could start disappearing in a month as Republican House leverages debt showdown to try to force big spending cuts on President Biden

US consumer spending flat in March; core inflation still strong

The economy expanded at a 2.6% rate in the fourth quarter

US economy grew at weak 1.1% rate in first quarter in sign of slowdown

Despite surging interest rates, punishing inflation and global turbulence, the US economy stood firm last year. From employers to consumers, the picture was one of surprising resilience. This year may be shaping up as a more downbeat story. The economy is widely expected to decelerate steadily and to slip into a recession sometime this year. Some early such signs could begin to emerge Thursday, when the Commerce Department will issue its first estimate of the economy's performance in the first three months of 2023. Forecasters have predicted that the gross domestic product the broadest measure of economic output grew at a 1.9 per cent annual rate from January through March, according to a survey by the data firm FactSet. That would mark a significant slowdown from the 3.2 per cent growth rate from July through September and the 2.6 per cent rate from October through December. The obstacles the economy faces are growing more troublesome. The biggest among them is the dramatically

US business activity rises to 11-month high in April: S&P Global survey

S&P Global said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 53.5 this month

US wholesale price fell, inflation pressures eased sharply last month

US wholesale prices fell last month, a sign that inflationary pressures in the economy are easing more than a year after the Federal Reserve began aggressively raising interest rates. From February to March, the government's producer price index dropped 0.5 per cent as energy prices plunged after having been unchanged from January to February. Compared with a year ago, wholesale prices were up 2.7 per cent in March, down significantly from a 4.7 per cent year-over-increase increase in February. The Labour Department's producer price index reflects prices charged by manufacturers, farmers and wholesalers. It can provide an early sign of how fast consumer inflation will rise. Wholesale inflation has come down steadily from a record 11.7 per cent year-over-year increase in March 2022 since the Fed began raising its benchmark interest rate to fight the worst inflation bout in four decades. Beginning in March of last year, the Fed has raised its key short-term rate nine times and is

BofA sees meaningful risks of Q2 US economic contraction after recent data

BofA pointed to data from April 3 showing US manufacturing activity slumped in March to the lowest level in nearly three years as new orders plunged

World Bank chief raises 2023 global growth outlook, eyes debt progress

Advanced economies, including the US, are also doing a bit better than the World Bank anticipated in January, Malpass said

US economy adds 236,000 jobs in March amid signs of market cooling

The jobless rate for March slid slightly to 3.5 per cent from February's 3.6 per cent, the data showed

Fed-favored inflation gauge rises by les than forecast, spending moderates

Excluding food and energy, the Fed's preferred inflation gauge - the personal consumption expenditures price index - rose 0.3% in February after the prior month was revised down slightly

Biden's $6.8 trn budget in jeopardy as Congress resumes sitting on Monday

US President Joe Biden's $6.8 trillion budget hangs in the balance as Congress resumes its sitting on Monday as Republicans have vowed to defeat it demanding spending cuts

Silicon Valley Bank collapse: Founders of colour unite in a WhatsApp group

In the hours after some of Silicon Valley Bank's biggest customers started pulling out their money, a WhatsApp group of startup founders who are immigrants of colour ballooned to more than 1,000 members. Questions flowed as the bank's financial status worsened. Some desperately sought advice: Could they open an account at a larger bank without a Social Security Number? Others questioned whether they had to physically be at a bank to open an account, because they're visiting parents overseas. One clear theme emerged: a deep concern about the broader impact on startups led by people of colour. While Wall Street struggles to contain the banking crisis after the swift demise of SVB the nation's 16th largest bank and the biggest to fail since the 2008 financial meltdown industry experts predict it could become even harder for people of colour to secure funding or a financial home supporting their startups. SVB had opened its doors to such entrepreneurs, offering opportunities to form