Stock Futures Drop Ahead of Fed’s Favored Inflation Gauge

US stock futures fell as investors rebalanced portfolios ahead of the end of a grueling first half and awaited a gauge of inflation that Federal Reserve officials consider their preferred measure of rising prices. Futures tied to the S&P 500 dropped 1.4%, a day after indices finished slightly changed. Dow Jones Industrial Average futures fell … Read more

How to Invest Your Cash for the Best Yields, Without Too Much Risk

Inflation is stubbornly high and interest rates on savings accounts aren’t anywhere close to keeping pace. While the yield on a two-year Treasury is now 3.28%, up from just 0.17% a year ago, the average savings account is barely in positive territory at just 0.07%, according to personal-finance website Bankrate. For investors hanging onto cash, … Read more

Larry Summers was the first to sound the alarm on inflation. More economists are applying his methods

Graham Allison is the Douglas Dillon professor of government at Harvard University Is the US economy headed for a hard landing? US Federal Reserve chair Jerome Powell says no. At the Federal Open Market Committee’s 4 May press conference, he insisted that the Fed will manage a “softish” landing. To the contrary, former Treasury Secretary … Read more

Good news for home buyers? Fannie Mae chief economist says the US housing market has finally turned a corner. Here’s why.

The inventory shortage, high prices and rising interest rates have finally bitten. Single-family home sales fell sharply by 16.6% in April to a seasonally adjusted annualized rate of 591,000, according to Census Bureau data released Tuesday. That was the slowest rate of sales since April 2020 during the earliest days of the COVID-19 pandemic, offering … Read more

Mohamed A El-Erian: Our growth engines are slowing. Policymakers need to pay attention

Mohamed A El-Erian, president of Queens’ College at the University of Cambridge, is a professor at the Wharton School of the University of Pennsylvania and the author of The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse ( Random House, 2016) The International Monetary Fund’s revised World Economic Outlook is sobering. … Read more

The Fed Wants to Raise Rates Quickly, But May Not Know Where to Stop

Federal Reserve Chairman Jerome Powell is shifting monetary tightening into a higher gear. His goal sounds straightforward — lift interest rates to “neutral,” a setting that neither spurs nor slows growth. But there’s a catch: Even in normal times, no one knows where this theoretical level is. And these aren’t normal times. There are good … Read more