Latest Economic News & Information

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Current Economic News

Fed officials clash on need for more stimulus (Reuters)
29 Jul 2010 at 4:17pm
Federal Reserve officials clashed on Thursday over whether the central bank should be more aggressive in supporting the stumbling economy and one said the Fed s current policy may be contributing to worryingly low levels of inflation.

Summary Box: Initial jobless claims drop (AP)
29 Jul 2010 at 3:48pm
JOBLESS CLAIMS DROP: New requests for unemployment benefits dropped last week by 11,000 to 457,000, the third drop in four weeks.

UPDATE - U.S. Fed s balance sheet shrinks in latest week (at Reuters)
29 Jul 2010 at 3:41pm
The U.S. Federal Reserve s balance sheet decreased in the latest week, Fed data released on Thursday showed. The balance sheet — a broad gauge of Fed lending to the financial system — was $2.308 trillion on July 28 versus $2.315 trillion on July 21.

Fed Member’s Deflation Warning Hints at Policy Shift (at New York Times)
29 Jul 2010 at 3:40pm
A Fed member warned that the agency’s current policies put the United States economy at risk of “Japanese-style” deflation.

Fed s balance sheet shrinks in latest week (Reuters)
29 Jul 2010 at 3:31pm
The Federal Reserve s balance sheet decreased in the latest week, Fed data released on Thursday showed. The balance sheet — a broad gauge of Fed lending to the financial system — was $2.308 trillion on July 28 versus $2.315 trillion on July 21.

No swaps with foreign cenbanks in latest wk-NY Fed (at Reuters)
29 Jul 2010 at 3:05pm
The U.S. Federal Reserve did not provide liquidity to foreign central banks in the latest week, the New York Fed said on Thursday.

Fed official eyes revival of crisis-era program (AP)
29 Jul 2010 at 2:09pm
The Federal Reserve should revive a crisis-era program to buy government debt if the country seems headed toward a bout with deflation, a Fed official said Thursday.

Uncertainty on rules hurts US growth -Fed s Fisher (at Reuters)
29 Jul 2010 at 1:46pm
U.S. economic growth will remain suboptimal until lawmakers and regulators provide clarity on new rules and taxes, a top Federal Reserve official said on Thursday.

The Fed: Bullard says U.S. close to Japan-style deflation (at MarketWatch)
29 Jul 2010 at 1:16pm
The U.S. is in danger of being pushed into the same price-shrinking economy that has been termed the lost decade in Japan, a voting member of the Federal Reserve said Thursday.

Swap rates fall below Treasury yields (at Financial Times)
29 Jul 2010 at 12:45pm
A historic relationship between US government bonds and interest rate swaps has broken down this week, for only the second time, as a flood of corporate debt issuance from banks pushed 10-year swap rates below Treasury yields.

Fed s Fisher sees suboptimal growth pace ahead (at MarketWatch)
29 Jul 2010 at 12:21pm
Richard Fisher, the president of the Dallas Federal Reserve Bank, said Thursday he was worried the economy will be sailing forward at a suboptimal speed. In a speech in San Antonio, Fisher said recent data point to a slightly weaker national outlook, with growth from the first quarter onward likely to fall below 3% for a prolonged period.

A Fed Member Warns of Deflation (at New York Times)
29 Jul 2010 at 12:18pm
In a new paper, James Bullard of the St. Louis Fed says the central bank s stated policy of maintaining interest rates exceptionally low for an extended period could lead to one of two steady states.

Fed s Bullard backs more asset purchases if needed (at MarketWatch)
29 Jul 2010 at 11:57am
The Federal Reserve should buy more Treasury securities if inflation dips lower, rather than lengthening its existing promise to keep rates low for an extended period, said James Bullard, the president of the St.

Fed s Bullard: buy more Treasuries if prices dip (Reuters)
29 Jul 2010 at 11:52am
The Federal Reserve should consider buying more Treasury securities, instead of promising an extended period of low rates to support recovery, should inflation drift lower, a top Fed official said.

U.S. stocks fall on reports of Fed deflation talk (at MarketWatch)
29 Jul 2010 at 11:18am
U.S. stocks fell to session lows Thursday after a Federal Reserve official said the central bank should consider bringing back a program to purchase government debt should the country appear headed towards a period of deflation.

Initial jobless claims drop to 457,000 (AP)
29 Jul 2010 at 10:19am
New jobless claims fell last week for the third time in four weeks but remain elevated. The decline is a sign that the economy likely added jobs in July, although not enough to lower the nation s high unemployment rate.

Senate Panel Backs Yellen, Raskin and Diamond for Fed (at New York Times)
29 Jul 2010 at 9:43am
The U.S. Senate Banking Committee on Wednesday approved the nomination of three new members to the Federal Reserve s powerful board, including Janet Yellen for vice chairman, clearing the way for a final vote by the whole Senate.

Indications: Stock futures gain strength as jobless claims fall (at MarketWatch)
29 Jul 2010 at 8:16am
Stock futures gather momentum after the government reports a decline in weekly jobless claims.

Crude oil, gold higher after jobless claims (at MarketWatch)
29 Jul 2010 at 7:53am
Crude oil turned higher and gold futures held onto gains Thursday after the government reported jobless claims fell by 11,000 to 457,000 in the latest week. Economists surveyed by MarketWatch had expected an initial claims level of 460,000.

Economic Report: Weekly jobless claims fall 11,000 to 457,000 (at MarketWatch)
29 Jul 2010 at 7:49am
The number of people applying for initial state unemployment insurance benefits fell 11,000 to 457,000 in the week ended July 24, the Labor Department reported Thursday.

Jobless Claims Down 11,000 to 457,000 (at TheStreet.com)
29 Jul 2010 at 7:41am
Initial jobless claims dropped by 11,000 to a seasonally adjusted 457,000 for the week ending July 24, the Labor Department said.

[$$] The Day Ahead: The Effect of No Stimulus (at TheStreet.com)
29 Jul 2010 at 7:00am
Deride government spending all you want, but we d be in terrible shape without the bailout packages.

Additional Information On Economic News Sources

Unless a major employer decides to close the local factory where they work, economic news is best regarded by most consumers as boring, confusing, and irrelevant However, economic news that may seem immaterial or inconsequential may be a lot more valuable than individuals and communities might think. 

Economic news is generally reported by the media like CNN, Reuters, Forbes, the Wall Street Journal, and the Economist, but really comes from the monthly information generated by the Bureau of Labor Statistics, the Department of Commerce, the United States Congress and the Dow Jones Index.  This information is then applied to current situations like company mergers or foreign trade agreements and used to report news stories that can be understood by consumers, who need the information in order to invest, relocate, look for a job, manage a municipality, or just sound smart around the water cooler.
For investors, the benefit of news from the Dow Jones Index is obvious, but watching figures from the government like the Unemployment Rate is important as well.  While the Dow Jones is a leading economic indicator because it rises or falls before the economy, the Unemployment Rate is a lagged indicator and reflects the status of the economy months behind or ahead.  So, if the Dow Jones indicator is rising, the GDP is steady, and unemployment is high, it is a good time to invest.  This is because stock prices are lower and spending will be rising as people become re-employed.

Economic news also helps with the job market.  Job seekers who are mobile can look to the news to help them figure out which part of the country has the lowest unemployment and the highest standard of living.  If it is time to move, relocating to a more prosperous area of the country may be the best way to get started again.  As well, news of widespread inflation, high unemployment, and job outsourcing in your field may mean sticking out a current job situation and cutting back on consumer spending until the economy improves.
Home owners benefit from economic news as well.  Remember, the government sets the primary interest rate and adjusts it to offset inflation.  Home mortgages are tied into this rate which means that monthly payments will fluctuate accordingly.  As well, the government regulates the banks when it comes to the prime and sub-prime lending rates for homes.  Changes in policy can mean the difference between saving a home or foreclosure.  Economic news can also predict the future value of homes based on expected economic development and growth in an area.  Buying a home at a lower price during a recession is profitable when economic indicators predict the value will rise as the local economy recovers.

Economic news is also important for people who are planning to retire.  Financial planning segments will give out pointers like when to put savings into money market accounts, how to talk to a financial advisor, and where to retire.  Following advice like selling a larger home and buying a condominium may be a wise choice, especially if a new home is in an area that enjoys a higher quality of life and longer life expectancy through economic development.

City planners will notice on the news that other communities go through similar economic challenges as their own area.  Following these kinds of stories can provide insight as to how another area revived its economy by attracting new business through tax breaks or by lobbying their local or state government for a new highway to bring traffic to the town.  Any way you look at it, economic news is important to everyone and helps consumers make intelligent and money-wise decisions.

Posted in Economic Growth & Development