Consumer Prices Jump 0.8% (12/14)
"The consumer price index jumped a bigger-than-expected 0.8% in November, sharpest climb in more than two years, driven by surging energy costs, a government report showed Friday.” Review the BLS Consumer Price Summary information. Assess the “core” or “all less than food and energy” inflation rate (Summary). Discuss how the core inflation rate has performed during the past years (Trend). Deliberate on how inflation may affect stock or equity prices (Stocks). Do you think the Federal Reserve was correct to forecast “upward pressure on inflation” (Minutes).
November’s 94,000 Jobs Could Cement A Small Rate Cut (12/07)
"Employers added 94,000 jobs in November as the unemployment rate remained unchanged at 4.7% and wages rose at a solid pace, the government said Friday.” Discuss if there are clear signs of weakness (Analysis). Examine the BLS establishment data and identify which sectors of the economy generated jobs in November (Data). Discuss how the November employment report may influence the Federal Reserve’s upcoming meeting and its policy action (Fed).
Consumer Credit Card Use Up (12/07)
"Consumer borrowing rose in October at a slightly faster rate than the previous month as shoppers continued to depend on their credit cards to finance purchases.” Assess how much outstanding revolving consume credit has increased during the past month (Credit). Discuss if there are any relationship between consumer credit and ersonal savings rate (Savings). How does a falling savings rate may influence investment (Affect)? How does foreign investment help to make up a short fall in savings (Current Account)?
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