Economy - The Boston Globe

Investors registered disappointment that Fed chairman Jerome Powell repeated the central bank’s “higher for longer” rate mantra in a press conference following Wednesday’s decision.

Don’t hold your breath for lower interest rates

The central bank's latest forecast surprised more than a few Fed watchers, rattled financial markets, and dimmed hopes for a quick reprieve from high borrowing costs.

Tax relief is just one piece of the competitive puzzle
Legislative leaders have reached a compromise on a tax relief bill aimed at making Massachusetts “more affordable, equitable, and competitive.” — but more needs to be done.

Fed keeps rates unchanged but signals likelihood of another hike this year to fight inflation
The move to leave its benchmark rate at about 5.4 percent suggests that the Fed thinks it has time to wait and see if the 11 rate hikes it unleashed starting in March 2022 will continue to cool rising prices.

Retail sales rise 0.6% in August largely due to a spike in gas prices

Americans stepped up retail spending modestly from July to August as the price of gasoline jumped, cutting into budgets as many families send their kids off to school.

Incomes grew in Greater Boston last year, but not as fast as inflation
The area is still among the most affluent places in the country, but the annual income increase of 3.5 percent was outpaced by all but two of the nation’s 40 largest cities.

Sharply higher gas prices pushed up inflation in August, yet underlying price measures cooled
Despite the seemingly divergent figures, the decline in the core measure could add to optimism that inflation is coming under control.

Larry Edelman | Trendlines
Inflation is toast — even if the Fed won’t say so yet
Inflation has cooled significantly — from more than 9 percent in June 2022 to 3 percent a year later — but central bank policy makers aren’t ready to declare victory.

Larry Edelman | Trendlines
A cooler job market is just what we need
Employers are hiring at a slower but still healthy pace, more evidence that a recession isn’t inevitable in the fight against inflation.

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Latest Headlines in Economy

Jerome Powell, chairman of the US Federal Reserve, responded to new data Thursday and said, "Given how far we have come, at upcoming meetings we are in a position to proceed carefully as we assess the incoming data and the evolving outlook and risks.”

Inflation and consumers show staying power as fed eyes another rate move

If Americans remain willing to pay up to buy products that they both need and want, it could allow companies to keep charging more, making it more difficult to fully stamp out inflation. 3:48 p.m.

Customers check price tags as they shop at a retail store in Vernon Hills, Ill. on June 12.

US economic growth for last quarter is revised down to a 2.1 percent annual rate

Though the economy has been slowed by the Fed’s strenuous drive to tame inflation with interest rate hikes, it has managed to keep expanding, with employers still hiring and consumers still spending. 4:52 p.m.

Larry Edelman | Trendlines

Andrew Bialecki, chief executive and cofounder of Klaviyo, is preparing to go public.

Is the long IPO drought over? A spate of deals kindles revival hope.

Three tech firms filed to go public last week, including Boston’s Klaviyo, the state's most valuable startup. 4:27 p.m.

Powell says economy’s solid growth could require additional Fed hikes to fight inflation

Powell noted that the economy has been growing faster than expected and that consumers have kept spending briskly — trends that could keep inflation pressures high. 10:13 a.m.

The Board of Governors of the Federal Reserve seal is displayed on the floor on Monday, Feb. 5, 2018.

Surprisingly durable US economy poses key question: Are we facing higher-for-longer interest rates?

Since last summer, the Fed has raised its benchmark rate to 5.4 percent, its highest level in 22 years. Yet so far, broadly speaking, not much pain has arrived. 8:27 a.m.

larry edelman | trendlines

The US economy has proven resilient despite the Fed’s aggressive campaign to cut inflation by ratcheting up borrowing costs for consumers and businesses.

Why investors are taking good economic news badly

Many investors had bet that the Fed would begin cutting interest rates later this year, which would have increased the value of their holdings as yields fell. 1:14 p.m.

TRENDLINES

Simmons University, Boston’s only women’s college, is paring down its liberal arts departments, amid substantial financial challenges and declining graduate enrollment.

Is the endangered liberal arts major worth saving?

Liberal arts have come under pressure from higher education’s rapidly rising costs, but the very nature of this education leads to adaptable, flexible workers. 12:03 p.m.