WASHINGTON — Rising U.S. consumer prices moderated again last month, bolstering hopes that inflation’s grip on the economy will continue to ease this year and possibly require less drastic action by the Federal Reserve to control it. Inflation declined to 6.5% in December compared with a year earlier, the government...
First, the Pandemic. Now, Inflation. Double-Whammy Tests Valley Food Bank.
These days, the cost of everything is up, and the Central California Food Bank — like many across the country — is struggling to keep up with demand as more low-income families turn to them for assistance. Kym Dildine, who is the local food bank's co-CEO, says she expects more...
Another Jump in Prices Tightens the Squeeze on US Consumers
WASHINGTON — American consumers absorbed another surge in prices in May — a 0.6% increase over April and 5% over the past year, the biggest 12-month inflation spike since 2008. The May rise in consumer prices that the Labor Department reported Thursday reflected a range of goods and services now...
Can the US Make Money Out of Thin Air Like AOC Says?
French philosopher Voltaire famously quipped: “If God did not exist, it would be necessary to invent him.” Something similar can be said of modern monetary theory, also known as MMT, because it may be the economy’s only hope to get through the pandemic. Coined by Australian economist Bill Mitchell and...
Fed Sees Dim Economic Outlook as Virus Squeezes Economy
WASHINGTON — The Federal Reserve expressed concern Wednesday that the persistent viral outbreak will act as a drag on the economy and hiring in the coming months and said it plans to keep its benchmark short-term interest rate pegged near zero to help provide support. In a statement at the end of...
Fed Leaves Low Rates Alone and Sees No Moves in Near Future
WASHINGTON — Chairman Jerome Powell made clear Wednesday that the Federal Reserve is prepared to keep its benchmark interest rate very low through at least next year — and possibly longer. Fueling that expectation is the growing belief of Fed officials that inflation will remain tame even as the economy...
Powell Sees Cooler US Hiring in Possible Hint of Rate Cuts
WASHINGTON — Federal Reserve Chairman Jerome Powell said Tuesday that U.S. job growth since early last year was not as robust as thought, a hint that the Fed may be ready to keep cutting interest rates to support the economy. Powell also said the Fed will soon announce plans to buy Treasurys,...
Housing Woes Push Into 2020 Campaign From Nevada and Beyond
LAS VEGAS — Like many, Mario Wolthers was lured to Las Vegas a decade ago from California by cheaper housing costs. But when his apartment managers tried to raise his rent last spring, he moved in with a roommate. "I'm a responsible taxpaying citizen," said Wolthers, a 38-year-old elementary school...
A Divided Fed Cuts Key Interest Rate for 2nd time This Year
WASHINGTON — A sharply divided Federal Reserve cut its key benchmark interest rate for a second time this year while saying Wednesday that it's prepared to continue doing what it deems necessary to sustain the U.S. economic expansion. The Fed's move will reduce its benchmark rate by an additional quarter-point...
Gov. Newsom Gets Bill Capping Rent Increases
SACRAMENTO — Lawmakers sent Gov. Gavin Newsom legislation Wednesday capping rent increases as the state struggles with an affordable housing and a homelessness crisis. The cap expires in 2030 and would not apply to housing built within the last 15 years and single-family homes not owned by corporations or trusts....