Stocks have yet to start noticing slowing economy in second half of 2022

Stocks have yet to start noticing slowing economy in second half of 2022

Just about all of the Pandemic stimulus programs–checks for households, no-cost small business loans, enhanced unemployment payments–will have expired by sometime in 2022. Which is leading economists to project a slowdown in the U.S. economy for the second half of 2022. No matter what the size of the Biden administration budget finally turns out to be. U.S. fiscal policy will go from stimulating economic activity to acting as a drag on the economy. The Brookings Institution’s Hutchins Center calculates that the economic impact from federal, state and local-government taxes and spending turned negative in the second quarter of 2021 and will remain that way into 2023.

Show us the jobs, Federal Reserve says, before any interest rate increase

We want to see the job gains before we remove any support for the economy, Federal Reserve Chairman Jerome Powell said at an event at the International Monetary Fund, on Thursday, April 8. Putting another marker in the ground on when the central bank might start to cut back on its schedule to purchase $120 billion a month in Treasuries and mortgage-backed securities–and then to raise its benchmark interest rate, Powell said the Fed wants to see a string of months like March when the economy added 916,000 jobs.

New claims for unemployment hit 1.15 million

New claims for unemployment hit 1.15 million

Initial claims for unemployment benefits through regular state programs climbed to 1.15 million on an unadjusted basis for the week ended January 9. On a seasonally adjusted basis claims rose to 965,000, an increase of 181,000 in the week. Add 284,000 new claims filed for Pandemic Unemployment Assistance, an emergency federal program for freelancers, part-time workers and others normally ineligible for state jobless benefits. It was the first week since July in which the unadjusted number of new state claims exceeded one million.