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Fed cuts rates by quarter percentage point — and rips up playbook for next year

Dec 19, 2024
The December rate cut was expected. But the Fed also reduced the number of expected rate cuts for 2025.
In September, Federal Reserve officials penciled in four interest rate cuts for 2025; now, they're only penciling in two.
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Income inequality declined in recent years, according to data

Dec 18, 2024
Workers at the bottom 90% had stronger wage growth than the top 1% in the years since the pandemic, according to the Economic Policy Institute.
Yasin Akgul/AFP via Getty Images

Some analysts see inflation lurking in Trump's plans

Dec 17, 2024
Tax cuts, tariffs and mass deportations could put upward pressure on prices — and interest rates.
Bond yields could keep rising in 2025 because of Trump's plans for tax cuts and additional tariffs. But can bond yields be too high?
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The producer price index vs. the consumer price index: same but different

Dec 12, 2024
The producer price index calculates price inflation from businesses' point of view — think labor costs or raw materials prices.
Services inflation dipped slightly, while goods inflation crept up, according to the November PPI report.
Joseph Prezioso/AFP via Getty Images

What France's political gridlock might cost its economy

While the country awaits a new prime minister, a budget crisis looms.
France's government was effectively toppled after French Prime Minister Michel Barnier was ousted in a no-confidence vote last week. Now, the country waits for a new prime minister.
Julien de Rosa/AFP via Getty Images

Inflation hasn't been beaten yet, latest CPI shows

Dec 11, 2024
Monthly inflation in November rose by the most in seven months, showing it's taking longer to tame inflation than expected.
But if you tune out extreme or lagging data from the November CPI, inflation doesn't look too shabby.
Frederic J. Brown/AFP via Getty Images

High prices are changing how we eat

Dec 11, 2024
Many Americans can't shell out more as costs rise. As a result, some are cutting their meat consumption or going to restaurants less.
The cost of food at home bumped up in November. Some Americans are eating less meat and other expensive items.
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Escalating child care costs force women out of the work force

Dec 11, 2024
For a lot of families, the cost of child care is a huge reason why inflation is still so painful. For years, the rise in child care and preschool prices has outpaced inflation overall. The latest Consumer Price Index showed the cost of child care increased 0.6% last month alone.
As child care costs rise, more mothers are forced to make the difficult decision to pause their careers.
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What unit labor costs can tell us about where inflation is headed

Dec 10, 2024
Unit labor costs are a way to measure productivity relative to workers' compensation.
If compensation is rising way faster than workers’ hourly output, that's a signal more inflation is to come.
Travis Dove/The Washington Post via Getty Images

Will new tariffs affect monetary policy? For now, it's wait-and-see

Dec 9, 2024
Carola Binder, an economist at the University of Texas at Austin, explains why tariffs might cause prices to rise, but they doesn't necessarily mean the Fed will get involved right off the bat.
Imported cars parked at the Port of Los Angeles.
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