Global markets lower after Wall Street gains on jobs data
BEIJING — (AP) — Global stock markets and Wall Street futures fell Friday after unexpectedly good U.S. jobs data left room for more interest rate hikes to cool inflation. In early trading, the FTSE 100 in London fell 0.4% to 7,513.45 and Frankfurt’s DAX lost 0.5% to 13,623.81. On Wall Street, the future for the benchmark S&P 500 index was off 0.6%. In energy markets, benchmark U.S. crude lost 95 cents to $89.55 38 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price basis for international trading, fell 94 cents to $95.64 per barrel in London.wftv.com
Norway's central bank enacts big rate hike to tame inflation
COPENHAGEN, Denmark — (AP) — Norway’s central bank raised its key policy interest rate by half a percentage point Thursday, saying “inflation has been considerably higher than projected." The rate's increase to 1.75% was larger than expected as the bank takes aim at inflation that reached 6.8% in July. “The rise in prices has been broad-based in recent months and may entail that inflation will remain high for longer than expected earlier,” Norges Bank said in a statement. The U.S. Federal Reserve, Bank of England and European Central Bank have all carried out hikes of a half-point or larger in recent weeks as they look to cool down the economy without tipping it into recession. “There is also a risk of a sharper slowdown in global growth.”Based on the outlook and balance of risks, the bank said it will likely raise the policy rate further in September.wftv.com
Yellen warns inflation in the U.S. is 'unacceptably high'
BALI, Indonesia — U.S. Treasury Secretary Janet Yellen has warned that inflation in the U.S. is "unacceptably high" and said bringing down rising prices will be Washington's "top priority." Data released on Wednesday showed U.S. consumer inflation rose to 9.1%, the highest level since 1981. "We're first and foremost supportive of the Fed's efforts; what they deem to be necessary to get inflation under control," she said at a press conference in Bali ahead of the Group of 20 finance ministers' meeting. "Beyond that, we are taking our own steps which we believe will be supportive in the short term to get inflation down — particularly what we're doing on energy prices and the Strategic Petroleum Reserve." "And also the work that we're doing to institute the price cap on Russian oil and to avoid potential future spikes in oil prices."cnbc.com
Congressional Budget Office says inflation to last into 2023
(AP Photo/Manuel Balce Ceneta) (Manuel Balce Ceneta)WASHINGTON — (AP) — The Congressional Budget Office released an economic outlook Wednesday saying that high inflation will persist into next year, likely causing the federal government to pay higher interest rates on its debt. The nonpartisan agency expects that the consumer price index will rise 6.1% this year and 3.1% in 2023. The 10-year estimates do contain positive news as this year's annual budget deficit will be $118 billion lower than forecast last year. Still, the accumulated federal debt will likely continue to grow over the next decade to be equal to roughly 110% of U.S. gross domestic product. Economists have said coronavirus relief programs issued by both the Biden and Trump administrations have contributed to higher inflation levels.wftv.com
Here’s how inflation could affect your next real estate move
If you’re buying and expect to keep the home for the long haul, you should expect the same value increases that existing owners are experiencing. If you are looking at a shorter investment time horizon — perhaps through flipping the property, for example — then we should caution “buyer beware.”washingtonpost.com
Inflation is painfully high, but some relief may be coming
(AP Photo/Elaine Thompson, File) (Elaine Thompson)NEW YORK — (AP) — Inflation is painfully high, but this hopefully is close to as bad as it gets. To be sure, economists say inflation will likely stay higher than it was before the pandemic, even after it eases through 2022. That can help drive inflation higher, as demand outstrips supply. Usually, companies will try to pass such increases along to their customers through higher prices. That could create its own feedback loop, driving prices higher.wftv.com
Kroger CEO says he expects normal levels of food inflation this year
Kroger CEO Rodney McMullen told CNBC on Thursday he does not anticipate problematic food inflation in 2021, while cautioning that month-to-month prices may be volatile. "For the whole year, we expect inflation to be at 1% to 2%, which is a pretty normal number," McMullen said on "Closing Bell." McMullen's comments come as the topic of inflation across the broader U.S. economy is in sharp focus. Wall Street has for weeks been paying close attention to the rising yield on the benchmark 10-year Treasury, which was around 1.547% on Thursday. With respect to grocery store prices, McMullen said there could be variability, especially when comparing them with 2020 levels during the early parts of the pandemic.cnbc.com
Is higher inflation around the corner?
Is higher inflation around the corner? As the economy rebounds, the price of goods and services is starting to creep up. Could that spur the Federal Reserve to raise interest rates sooner than expected? CBS MoneyWatch contributor Anthony Mirhaydari explains.cbsnews.com