Tag: interest rate
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April 2023 jobs report shows jobs market still hot adding 253,000 jobs and 3.4% unemployment
The US labor report for April 2023 released 8:30am ET showed US economy added 253,000 jobs and employment rate is at 3.4%. The number of unemployed population is 5.7 million. The unemployment rate in March 2023 was 3.5%. In February 2020 unemployment rate was 3.5% right before the pandemic. This is a sign that things…
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Federal Reserve raised interest rate to 4.75% to 5% in March 2023 meeting
Federal Reserve continue to see inflation elevated. Their target is 2% to reach price stability. Their believe is w/o price stability businesses will not function. To fight inflation, the committee raised interest rates .25% percent to a range of 4.75% to 5.0%. With the banking closure of SVB and weakening banking sector from deposits moving…
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Fed Chair Powell testifies before Senate – rates need to be higher
In the March 2023 Congress testimony, Fed Chair Powell said based on rising inflation data and high jobs growth data, interest rate needs to go higher. Inflation is running at 5.4% and is too far from the 2% target. More interest rate hike will be needed to stop inflation. Powell says inflation has a psychological…
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Stocks reacted positively to new October 2022 consumer price index (CPI) up 7.7%
The Labor Department on Thursday 11/10/2022 released the consumer-price index (CPI) for October and it’s up 7.7% from a year ago. This compares to 8.2% for September and signals inflation may have peaked and is now trending down. CPI includes goods and services consumer consume. The core CPI excludes energy and food which are volatile…
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Why Stocks drop when Federal Reserve increases interest rate?
Stocks obey the basic economic laws of supply and demand. When demand is high, prices rise but when demand drops, prices go the opposite direction and drop. When Federal Reserver Chairman announced it will increase federal funds rate .75% to 3 1/4% on September 21 2022 and will likely need to continue to increase the…