Household Incomes Rose Last Year for the First Time Since the Covid-19 Pandemic
Household incomes rose last year for the first time since the Covid-19 pandemic began, reflecting the effects of easing inflation and a strong job market. The new data from the U.S. Census Bureau on Tuesday signaled an
improvement in 2023 after inflation that spiked to a 40-year-high the prior year swallowed up household income gains.
Federal Reserve Chair Jerome Powell faces a difficult decision as the central bank prepares to cut interest rates next week: Start small or begin big?
The Consumer Price Index (CPI), a measure of inflation, rose 0.2% month-over-month and 2.5% annually in August, the Bureau of Labor Statistics reported on Wednesday, marking the lowest point of annual inflation since February 2021. The figures likely cemented Federal Reserve officials’ decision to cut interest rates by a quarter of a percentage point next week.
Producer inflation was relatively tame in August, keeping alive expectations that the Federal Reserve will cut interest rates very soon. Wholesale prices have been more volatile than consumer prices in 2024 but remain on track for the Fed’s goals.
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