Bostic Says Disappointing Data Prompted Him to Pull Back Rate Cut Projections

A day before the release of fresh inflation data, Atlanta Fed President Raphael Bostic said the spate of inflation data already released in 2024 had prompted him to lower his forecast for rate cuts to only one.

Bostic said last week he had lowered his forecast to just one rate cut in 2024, likely coming in the fourth quarter, compared with the Federal ꦓReserve’s projections of three rate cuts.&nbs﷽p;

In an interview with Yahoo Finance, Bostic pointed to disappointing inflation data this year as his motivation to adjust his forecast back from two rate cuts. Depending on the data, he could continue to p💝are back his forecast. 

“Given that the U.S. economy has been so robust and so strong and so resilient, I can’t take off the possibility that r🉐ate c𝓰uts may even have to move further out,” Bostic said.

After falling dramatically in 2023, 澳洲幸运5开奖号码历史查询:progre🌠ss on inflation is beginning to st♏all before it hits the target of 2%, and market watchers will be looking at 澳洲幸运5开奖号码历史查询:Wednesday’s Consumer Price Index for more signals on price pressures. 

Bostic said in talking with business contacts in his southeastern region, demand was slowing and the labor force was stabilizingꦕ, giving him confidence in the ove🃏rall path of the economy. Another encouraging sign was that businesses believed they had less leeway to pass costs on to their customers.

“Most of them are feeling like they have less pricing 🎉power than they had a year ago or 18 months ago. Their ability to paꦛss through price increases, they tell me, is much weaker than it was before,” Bostic said.

-Terry Lane

Why Half Of The New US Manufacturing Jobs in the Next Decade Could Go Unfilled

The U.S. manufacturing industry could need as 🍰many as 3.8 million jobs between 2024 and 2033 as significant investment continues to drive growth. However, according to a recent report from Deloitte and The Manufacturing Institute, 1.9 million of these jobs could be left vacant if employers don’t focus on workforce challenges.

The U.S. 澳洲幸运5开奖号码历史查询:manufacturing sector faces a skills gap and a tight 澳洲幸运5开奖号码历史查询:labor market despite its sub💦stantial post-pandꦕemic rebound, the report said. Attracting and retaining talent was found to be the biggest business challenge for 65% of manufacturers surveyed.

Leaving these positions unfilled could result in decreased productivity and efficiency within the manufacturing industry. It could al𓂃so increase workloads for existing employees, potentially causing burnout and higher turnover rates. Additionally, the lack of skilled workers could hinder innovation and growth, making it difficult for manufacturers to stay competitive in the market.

Read more about how manufacturing and the broader economy would be impacted by these unfilled jobs here.

-Kathleen Marshall

Half of Households Are Struggling to Keep Up Housing Costs

Half of U.S. homeowners and renters said they struggle to pay housing costs as elevated home prices, rents, and borrowing costs have strained budgets, according to a report by online real estate brokerage Redfin (RDFN). 

Redfin reported 49.9% of survey respondents said they sometimes, regularly, or greatly🔜 struggle to afford housing payments and many are making sacrifices to cover costs♐. 

The study found more than one-third (34.5%) indicated they decided to cut back on vacations in order to pay housing bills. Almost one-quarter (22%) skipped meals, while about one-fift🅘h worked extra hours (20.7%) or sold their belongings (20.6%). Others noted they borrowed from family or friends (17.9%), dipped into retirement savings (17.6%), or passed on or delayed medical care (15.6%).

Read more about where homeowners are cutting back to pay housing bills here.

-Bill McColl

What to Expect From Tomorrow's Inflation Report

The Bureau of Labor Statistics is set to deliver another round of mixed signals about the course of inflation on Wednesday when it publishes the official report for the 澳洲幸运5开奖号码历史查询:Consumer Price Index for March.

The consensus forecast among economists is for the CPI, a measure of the cost of living, to have risen 3.5% since last March, an acceleration from the 3.2% annual inflation rate in February, according to a survey of economists polled by the Dow Jones Newswires and the Wall Street Journal.

"Inflation’s stickiest components—housing and other services—continue to see strong price growth, propping up inflation even as certain goods prices cool," wrote Kayla Bruun, senior economist at decision intelligence company Morning Consult.

However, it’s also expected to show a cooling of 澳洲幸运5开奖号码历史查询:“core” inflation, an important measure that excludes prices for food and energy, and which is clos🌞ely watched by central bankers at the Federal Reserve who set the nation’s monetary policy.

Read more about the implications of the inflation data here.

Kashkari Reiterates Two-Rate-Cut Forecast After Comments Last Week

Citing the need to keep public expectations for inflation in check, Minneapolis Fed President Neel Kashkari told a university audience that the 澳洲幸运5开奖号码历史查询:Federal Reserve was committed to bringing 澳洲幸运5开奖号码历史查询:inflation down to the 2% target.

Last week, Kashkari said despite projections of three rate cuts this year, persistent inflation may keep the 澳洲幸运5开奖号码历ꦜ史查询:Federal Reserve from cutting rates at🀅 all in 2024, spooking investors and sparking a stock se♍lloff.

In the question and answer session Monday night at the University of Montana, Kashkari said he did expect two interest rate cuts in 2024, but emphasized that the public must feel confident inflation is returning to 2% before cutting rates.

“We have to go all the way, because if we stop short, then you all are going to say that maybe they will stop short next time, and that undermines confidence in the Fed,” Kashkari said. “So we do need to get it all the w🍰ay back down and my colleagues and I are committed to do so.”♒

Kaskhari was asked about his comments last week, which he said were misconstrued by social media reaction. His comments came as recent data has shown that 澳洲幸运5开奖号码历史查询:progress on infl🔯ation may be stꦐalling, raising questions over whether the Federal ꦿReserve would act on its projections of three rate cuts. 

Kashkari said he wasn’t trying to make news in the interview and only restated what he had previously said, which was that his 💯“base case” would be two interest rate cuts this year unless inflation continues to move sideways, leaving open the possibility the Fe🏅d wouldn’t cut rates at all.

“There was noth﷽ing new in what I said, but for some reason, people paid more attention last week, I don’t know why,” he said. 

-Terry Lane

Small Business Optimism Falls to Lowest Levels Since 2012 on Sales Worries 

With 澳洲幸运5开奖号码历史查询:inflation pressures continuing to mount, small business owners' sentiment about the economy in March was at its lowest levels in more than a decade, the National Federation of Independent Business (NFIB) monthly survey ꧑showed. 

The NFIB’s Optimism Index fell almost a full point to 88.5 in March, its lowest level since December 2012 and the 27th straight month the index came in below its 50-year average. 

“The small business sector is showing signs of a potential slowdown in economic activity with net sales expectations falling eight points, the main contributor to the decline in last month’s Index,” said the NFIB report f💝rom Chief Economists William C. Dunkelberg and Holly Wade, executive director of the group’s research center.

澳洲幸运5开奖号码历📖史查询:Small businesses still see inflation as their top challꦚenge, with 25% pointing to it being the most important problem. Similarly, the number of owners raising their average selling prices jumped seven percentage points to 28%. 

With higher prices continuing to frustrate small businesses, the NFIB said it was unlikely that the Federal Reserve would move to 🦋cut inflation-fighting interest rates from their 澳洲幸运5开奖号码历史查询:23-year high at its next two meetings. Only 4% of respondent🐟s to the survey said finan🧔cing and interest rates were the biggest problems in their small business. 

-Terry Lane