DJIA: 16,643.01  -11.76 (-0.07%) | NASDAQ: 4,828.325  +15.616 (0.32%) | S&P 500: 1,988.87  +1.21 (0.06%) Markets status unavailable

  • Show Article Details

    The U.S. economy grew faster than initially thought in the second quarter on solid domestic demand, showing fairly strong momentum that could still allow the Federal Reserve to hike interest rates this year. Gross domestic product expanded at a 3.7 percent annual pace instead of the 2.3 percent rate reported last month, the Commerce Department said on Thursday in its second GDP estimate.

  • Show Article Details

    The number of Americans filing new applications for unemployment benefits fell more than expected last week, pointing to a steadily firming labor market. Initial claims for state unemployment benefits slipped 6,000 to a seasonally adjusted 271,000 for the week ended Aug. 22, the Labor Department said on Thursday. It was the first decline since July 18.

  • Show Article Details

    New applications for U.S. unemployment benefits fell by 6,000 to 271,000 in the seven days ended August 22, the first decline after four straight weekly gains. The latest report on initial claims indicate the labor market is still improving. initial claims have clung below the key 300,000 threshold for 25 weeks, the longest stretch in more than 15 years. Economists surveyed by MarketWatch had forecast initial claims to fall to 270,000. The average of new claims over the past...

  • Show Article Details

    For Thursday, TheStreet (TST) awaits the kickoff of the Federal Reserve's annual retreat in Jackson Hole, Wyo. While Fed Chair Janet Yellen is not expected to attend, we'll be on the lookout for any clues about a potential interest-rate hike before the end of the year. On the economic calendar, at 8:30 a.m., the report on the nation's gross domestic product for the second quarter will be released.

  • Show Article Details

    Ray Dalio of Bridgewater expects a' big' easing. Ray Dalio, founder of Bridgewater Associates LP, on Tuesday created a stir on Wall Street by predicting that the next move by the Federal Reserve will be to ease the monetary policy rather than tighten as is widely anticipated. Read: Bridgewater's Ray Dalio sees Fed launching quantitative-easing measures.

  • Show Article Details

    Presidential candidate Donald Trump on Wednesday said he thought it was "worth the fight" for congressional Republicans to threaten not to raise the U.S. debt limit as a way to pressure the Obama administration to agree to spending cuts. "Honestly there is so much fat in Washington that if you had the right people in there you could cut it," Trump said on Bloomberg TV.

  • Show Article Details

    This week's market selloff explained in 5 questions and answers. The S&P 500 and Dow industrials posted their biggest percentage rises since 2011 on Wednesday. The fluctuations are likely weighing on the minds of baby boomers as they approach retirement.

  • Show Article Details

    Jay Shambaugh, a George Washington University professor, is joining the White House Council of Economic Advisers as its third member, rounding out a team that provides economic analysis and advice to President Barack Obama. The White House on Wednesday announced Obama's appointment of Shambaugh, who worked as a staff economist for the CEA from 2009 to 2011.

  • Show Article Details

    * Fed's Dudley sees U.S. Sept rate hike "less compelling" * Traders exit curve flatteners if Fed holds rates longer * Poor bidding at 5-year, 2-year floating-rate note sales * Shorter yields hit 1-week highs after upbeat durables data By Richard Leong NEW YORK, Aug 26 - Longer-dated U.S. Treasuries prices stumbled on Wednesday after a top Federal Reserve official scaled back his view of a rate ...

  • Show Article Details

    The first clue as to the potential negative impact of the stock-market selloff on the U.S. economy will come Friday, in the University of Michigan's reading on consumer sentiment, said William Dudley, the president of the New York Fed. The Michigan report is where you might see "a little bit" of an effect, Dudley told reporters Wednesday. Otherwise it might take time for the impact of the visible in the data, he said.

  • Show Article Details

    Think your city is expensive?Maybe you can use a little perspective. The Economic Policy Institute has updated its family budget calculator, which estimates what it would cost for someone to live what they describe as a “modest but comfortable” life in 618 metro and rural areas across the United States.The tool tallies living costs, child care expenses, health care and rough estimates for groceries, transportation and other bills. For the first time this year the institute also looked at living costs for a single person without children — added thanks to popular demand — and for bigger families with up to four children.The most expensive cities for singles and for families were fairly similar, though the exact order varied for different family sizes depending on how taxes, child care and health care costs varied from state to state.[Some of the content in this entry could not be displayed on this device.]For single people, a city’s affordability was mostly determined by rent, which is frequently the largest expense in the monthly budget. That explains why the top three most expensive cities for single people with no children — Honolulu, Stamford, Conn., and San Francisco — were also the cities with the largest rent bills.Take Honolulu, which turned out to be the most expensive metro area for a single person. With a studio apartment going for $1,267 a month, rent there was the second highest of the cities studied. The person there pays about $778 a month in taxes, which was the largest for a single person.Stamford, the second most expensive city for single people, had the highest rental costs  — with a studio costing $1,269 a month. And San Francisco had both the third highest rental estimate of $1,191 and the third largest monthly budget.New York, the fourth most expensive city for a single person, had the seventh largest rent bill but the third biggest tax bill — a measure that includes payroll taxes along with federal and state income taxes. A studio apartment there goes for about $1,163 a month and taxes take up $678 of the typical monthly paycheck.As the graphic shows, the picture changes a little once you add children into the mix. Affordability then depends not only on housing, but also on child care costs, which can be as expensive as housing  in some parts of the country. People with children also face bigger tax bills, higher housing costs and other miscellaneous bills, the study shows.For instance, D.C., which was the fifth most expensive place to live for a single person, jumps to becoming the most expensive place to live for a family of four. That’s largely because the Washington area, which includes Virginia and Maryland, is by far the most expensive city when it comes to child care costs, according to the report.In the District, day care for two children costs about $2,597 a month, about $600 more monthly than the next most expensive metro area when it comes to child care for two kids, Nassau County in Long Island, N.Y. The monthly child care bill in D.C. is also roughly 70 percent more expensive than the $1,500 needed for a two bedroom apartment there, the institute estimates.Of course, your actual budget may look different from the estimates used by the institute. The numbers don’t account for saving or paying down debt, two habits that are important to many families, especially as college costs increase. The calculator also assumes that all meals are cooked at home and not all people have that kind of discipline — despite the savings potential.Housing estimates are based on fair market rents from the Department of Housing and Urban Development, which uses mid-level rental prices that may be lower than what some families actually pay, depending on where they live. Indeed, a growing number of households spend more than half of their paycheck on rent. But, the estimates can be a useful gauge of how affordability changes broadly from one city to the next.Read more from Get There:Unsteady paycheck? There’s an app for that.One third of households making more than $75,000 live paycheck to paycheckThe cities where Americans are most likely to spend more than half of their paycheck on rentA millennial couple asks: Can we afford to have a baby?[Some of the content in this entry could not be displayed on this device.]






  • Show Article Details

    Over the past year, Joseph Stiglitz has ramped up what is a rare campaign for an economist, particularly a Nobel laureate. He is pressuring policymakers, on the campaign trail and inside the Federal Reserve, to combat America's widening income inequality, which he has long called a massive economic concern.Stiglitz and his team of researchers at the Roosevelt Institute (where he is the chief economist) produced a report earlier this year that Democratic candidates for president, including party frontrunner Hillary Rodham Clinton, have borrowed liberally from in their own policy plans. Today, he's releasing a new paper aimed at monetary policy makers, arguing that "the Fed has played a central role in the creation of inequality" and laying out several proposals to fix that — including delaying the interest-rate increase that most analysts had expected to come next month (at least before the recent global market turmoil broke out).On Thursday, Stiglitz will take his message to a conference in Jackson Hole, Wyo, held by a group called the "Fed Up" campaign, in the shadow of an annual monetary policy conference that draws top monetary thinkers from around the world. He previewed that message in a phone interview with Wonkblog, which has been edited for length.Tankersley: The push to delay a rate increase, for inequality and other reasons, has been going on for a while. But we’re at a particularly interesting moment in the global economy right now. How do recent events in markets change or amplify what you’ve been calling for?Stiglitz: It certainly amplifies it. One way of connecting the two things that have gone on is that, part of the hope for the robust recovery of the United States, in spite of the growing inequality and the fact that the middle is not doing very well, was that even if demand in the United States was going to remain weaker than it would have been because of the weak middle class, demand in emerging markets, including China, would fill the gap. What has been going on is a reminder that that may not work out in the way people had hoped. In fact, China may be contracting.So it is both a commentary on the importance of this inequality and, in terms of the overall macro situation, a reminder that we live in a very precarious global situation where confidence that we’re about to face inflationary pressures is very premature.What can you say this week to get the attention of the Fed, in terms of timing of a rate increase?Before this week’s turmoil, the big point we were trying to make is that — well there are two points. One is a broader theoretical issue about the Fed’s impact on inequality, and my belief, and I think a widely shared one, that inequality is one of our country’s major problems, and so the Fed ought to be sensitive to the impact its policies have on inequality.One of the main ways, and even (Fed Chair) Janet Yellen has talked about this, is if that we have higher unemployment than we need, that not only causes more inequality among people who are unemployed, it also exerts downward pressure on wages for everybody, and the lower GDP that results means that states and localities have less revenues, so they have to cut back on public services, which are obviously more important to the people in the middle and on the bottom.The second one is a more focused attention on precisely where we were in the business cycle and the asymmetric risk that we face. I don’t think anybody sees significant inflationary pressures. So the standard argument for raising interest rates simply isn’t there. There’s been some discussion that, well, the labor market is tight, and well, eventually inflation will increase. (But) if you look at broader measures of the labor market, it isn’t very tight, it isn’t in a good situation, reflected in how wages are not keeping up with inflation, the low labor-force participation rate, the high long-term unemployment rate.The key question is, what is the so-called natural unemployment rate — the rate at which unemployment starts? Back in the '60s, the United States had unemployment as low as 2, 3 percent without any inflationary pressures. We’re nowhere near that. The question is, what is the natural rate? I think there is no compelling argument that it’s 4.5, 5 percent. It could be three percent. Since we don’t know, there’s no reason to believe that pushing the unemployment rate lower than it is today will necessarily set off inflation.Are Fed policy makers receptive to those arguments?As we know, the committee is divided. There are people who are inflation hawks and there are people who are concerned with unemployment, wages and the macro economy. That’s why we’re hoping to have some influence. As I said, the events of the last couple of days could have had more influence than anything I could say.How much would a small initial rate increase, a quarter of a percentage point, actually affect the economy?That’s a subject of a lot of discussion, in the following sense: The actual increase of the interest rate itself probably doesn’t affect behavior that hugely (with a quarter-point rate increase). The issue is really what it does to the provision of credit, and to market expectations, and how those expectations get translated.It is quite conceivable that given the short-sighted nature of markets, that when they actually raise interest rates, markets will come to believe that there’s been somewhat of a bubble. If that were the only thing going on, the market might handle it reasonably well. But in the context of the world we live in, with China slowing down, the euro crisis continuing, the turmoil in commodity prices, all of which interact with each other, it could have significant effects on the stock market, as we’ve seen. Certainly it could have effects on stock-market volatility. All of which could lead firms to become a lot more cautious in their investment, and consumers in their consumption decisions, which could have the short-term effect of weakening the economy.When our growth has been as volatile as it has been, when the stock market has been as volatile as it has been, when growth rate has been expected to be as weak as it is, and with all the weak signs, it would be undertaking undue risk.






  • Show Article Details

    The White House is hopeful that Congress will reauthorize the Export-Import bank when it returns from recess, spokesman Josh Earnest said on Wednesday. Funding for the Export-Import bank lapsed when Congress failed to pass a reauthorization bill last month. Congress will have a chance to restore those funds when it returns Sept. 8, Earnest said.

  • Show Article Details

    The American stock market has surrendered a stunning $2.1 trillion of value in just the last six days of market chaos. The enormous losses reflect the deep fears gripping markets about how the world economy will fare amid a deepening economic slowdown in China. The Dow, S&P 500 and Nasdaq have all tumbled into correction territory, their first such 10% decline from a recent high since 2011.

  • Show Article Details

    Currency strategists at Goldman Sachs and Merrill Lynch aren't budging on euro-dollar forecasts. The odds of the Federal Reserve raising interest rates in September-- or even this year-- have diminished greatly since the beginning of August. But despite this massive shift in expectations, analysts with some of the largest players in the $5.3 trillion--a--day currency market have maintained their forecasts for the euro to hit parity with the dollar.

  • Show Article Details

    China's slowdown is among international developments that may influence how soon and how much the Federal Reserve raises interest rates, New York Federal Reserve President Bill Dudley said Wednesday. "It's not just how we're performing today, it's all the things that affect the outlook beyond the next few months," he said in a news briefing at the Fed's New York branch in lower Manhattan.

  • Show Article Details

    New York Fed President William Dudley, a pivotal member of Fed Chairwoman Janet Yellen's inner circle, backed away Wednesday from supporting an interest-rate hike at the U.S. central bank's September meeting. Wild swings in global financial markets, the slowing Chinese economy and falling commodity prices have increased the "downside risks" to the U.S. economic outlook somewhat, Dudley said in brief remarks to reporters Wednesday. There could be less demand for U.S. goods and...

  • Show Article Details

    Democratic presidential candidate Hillary Clinton on Wednesday said she would bolster rural economies by encouraging investment, boosting family farms' profitability, increasing clean energy production and improving access to education and healthcare.