The Federal Reserve has posted its first operating loss since 2011, marking a stark turn in the central bank’s history since the 2008 financial crisis. Additionally, these negative earnings may put more pressure on the Fed to find a solution …
Chinese Exports Weaken, Global Economy Experiences Slowdown
Chinese exports are crucial for nearly all countries around the world and reflect the status of the global economy, whereas now both are experiencing a slowdown. Chinese exports expanded just 7.1% in August from the year earlier, which is the …
A Hidden Reason of Inflation – Monetary Policy
The Fed has increased interest rates by 3% over 3 months, the largest increase since 1982, as a response to the highest inflation in over 40 years. The root of this inflation, in many economists’ eyes, is the historic growth …
New Global Growth Estimates Point To Slowdown
The July 2022 World Economic Outlook revealed that the global economy’s future is “gloomy and more uncertain.” The key economies of China, Russia, Europe, and the United States all have critical issues in the near term, with a continued slowdown …
Self-Employed Workforce Falling From Largest In 13 Years
During the Great Resignation in 2021, when increasingly high amounts of employees quit their jobs, the trend was confidence in the ability to work remotely and be self-employed. This confidence led to historically high growth of the self-employed workforce and …
Home Prices Fall for the First Time in 10 Years
Ever since the housing market plummeted in the 2008 Great Recession, houses have skyrocketed in price. Even with home prices falling, houses are at relatively low affordability levels which a fall in prices which may change in the near future. …
Stocks Endure Difficult Third Quarter
Equities across the board were down in the quarter ending September 30th, as the market continues to react to global turmoil and the Fed’s aggressive interest rate spikes. Sectors that held up the best relative to other sectors included biotechnology, …
Retirees Make Up an Increasing Part of the Population
Since the early 2010s, the share of the U.S. population made up of retirees has been growing at a fairly constant rate, yet saw a spike since the beginning of the pandemic. In just the first year of the pandemic, …
The Fed’s Continuous Increase Of The Fed Funds Rate – Monetary Policy
The Fed Funds Rate, which is controlled by the Federal Reserve Board (also known as the Fed), is the interest rate at which banks charge each other to borrow money. This year, the Fed has continued to aggressively increase the …
Unemployment Claims On The Rise – Labor Market Overview
Unemployment claims reached their highest level since late November 2021, and have steadily increased throughout the year. As of the week ending on August 6th, the job market saw initial unemployment claims rise to 262,000. This was an increase of …
Housing Affordability Series 1 of 2: Rising Mortgage Rates Deter New Buyers
The 30-year conforming mortgage rate has a profound effect on the prices of homes and the rate at which interest is collected on mortgages. This rate is increasing, which has an inverted effect on home prices, causing them to drop …
Euro and Pound Plummeting in Value to the Dollar
The European economy is currently experiencing turbulence due to the Ukrainian conflict and Russian supply cuts. On the other hand, high-interest rates have increased the strength of the U.S. dollar, resulting in historical lows in the exchange rates of the …
Fixed Income Update
U.S. Treasury bond yields rose in August, with the 10-year Treasury ending the month with a 3.15% yield. Treasury bond yields flattened as well, with the shorter-term 1-year treasury finishing the month at 3.50%, nearly identical to the 20-year treasury …
Equity Review
U.S. equities began August in rebound mode but reversed course to end the month in negative territory. Continued Fed rate hikes and recession fears weighed on equities. Company earnings are increasingly becoming a focal point as shrinking margins are becoming …
Personal Savings At Lowest In 14 Years
During the peak of the pandemic, uncertainty over the job market and elevated unemployment caused consumers to save at heightened rates. In addition, “going out” became extremely limited as restaurants, stores, and vacations were off the table for a majority …
Social Security Cost of Living Adjustment Sees Huge Jump
Many rely on Social Security and the annual increases known as the Cost of Living Adjustment (COLA) to keep up with inflation. The Cost of Living Adjustment (COLA) occurs annually and compares the 3rd-quarter Consumer Price Index for Urban Wage …
Macro Economic Overview – September 2022
Recession fears pressed on markets as equities pulled back from a mid-summer rally that many analysts suspected was short-lived. U.S. equities began August in rebound mode but reversed course to end the month in negative territory. Crude oil and gasoline …
What Is ESG- Why Corporations Follow It – Part 3 of 3 Series
As previously discussed in the other two parts of this series, ESG is a financial philosophy where investors investigate three non-traditional aspects when choosing whether to invest in a company. These aspects are environmental consciousness, social treatment, and governance efficacy. …
Wage Increases Don’t Necessarily Mean More Money In Your Pocket
A jump in inflation could mean that even with a pay raise, you could have less money in your pocket. To evaluate wages, there are two factors to consider, nominal wage growth and real wage growth. A nominal wage is …
Equity Indices Mover Higher In July – Domestic Equity Overview
Stock earnings have become indirect indicators of where the economy may be headed. Companies that have thus far released earnings for the 2nd quarter are revealing slowing growth trends and heightened expenses hindering profitability. Various companies have announced pullbacks in …