Omicron’s Impact on the U.S. Economy
Omicron, the newest and most contagious COVID variant, has not only cast a pall over the holiday season but also raises questions about the future. That is, will we continue to see the emergence [...]
Demand for fossil fuels exceeds pre-COVID levels
The demand for natural gas, coal and oil has created price increases not seen for years, pushing electricity costs in Europe to all-time highs. The supply shortage has several causes, including supply-chain bottlenecks and [...]
Federal Reserve Sends Strong Signal that our Central Bank will Pare Back Stimulus
On Friday Federal Reserve Chairman, Jerome Powell, sent a very strong message that our central bank could begin reducing its current $120 billion monthly purchases of bonds this year. The ultimate decision will depend [...]
Inflation in Spotlight Again
On Wednesday, the Labor Department reported the core consumer price index (CPI) inflation rate rose 5.4% over the past year to the highest 12-month rate since 2008. Core inflation is a measure of the [...]
Increase in demand and supply side constraints
Americans are confronting a new challenge of having to wait and pay more for products. Supply chain woes have negatively impacted makers of everything from cars and clothing to home siding and medical needle containers. Fed [...]
IMF Projects 6% Global Growth
The International Monetary Fund projects 6% global growth in 2021. America is driving the globe’s economic bus. The recently adopted $1.9 trillion American Rescue Plan has shifted the U.S. economy into high gear. The [...]
Putting the economic impact of COVID-19 into perspective
Humpty Dumpty sat on a wall Humpty Dumpty had a great fall All the king’s horses and all the king’s men Could not put Humpty together again One year ago, the World Health Organization warned [...]
Supporting the economy
We are getting to the light at the end of the tunnel, but it is going to take longer. Part of the problem is that the United States participates in the global economy. Specifically, [...]
Let us toast the New Year
As we think about 2021, the words from Charles Dickens’ 1859 historical novel “A Tale of Two Cities” remain relevant: “It was the best of times, it was the worst of times ... it was the [...]
Slowing job growth spurs stimulus talks
Last Friday’s job report highlighted that the labor market recovery has slowed. The U.S. added just 245,000 jobs in November. This increase is far below the rebounds in May and June when business payrolls increased [...]
Extraordinary responses to COVID-19 challenges and other debacles
COVID-19 has caused monumental disruptions across the globe. This past week, the federal Centers for Disease Control urged Americans not to travel for Thanksgiving, traditionally the busiest travel period of the year. The United States has [...]
Economic outlook remains uncertain
Last Thursday, Federal Reserve Chairman Jerome Powell emphasized that the U.S. economy needs more fiscal and monetary policy support. He pledged that the Fed would take whatever actions are necessary to protect the economy [...]
Rising Coronavirus Infections Weigh Heavily on Europe and the United States
The rapid escalation in the number of coronavirus victims has prompted policy makers in Europe and the United States to take or advocate corrective actions. On Saturday, the British prime minister introduced regulations that [...]
IMF reports that global public debt hit a record of 100% of GDP
The International Monetary Fund reported that global public debt would rise to 100% of the world gross domestic product in 2020. On an unprecedented level, governments have made huge fiscal expenditures in response to the coronavirus [...]
OPEC reduces long-term forecast for oil demand growth
The world has significantly changed its attitude toward fossil fuels since the Organization of Petroleum Exporting Countries imposed an embargo against the United States for its decision to resupply the Israeli military during the 1973 Arab-Israeli [...]
Economy is grudgingly advancing
Economists now anticipate that our economy will only slowly recover from the coronavirus pandemic. Heartbreakingly, there is mounting evidence that COVID-19 has inflicted a loss of millions of jobs forever. The labor market has recovered [...]
Economy is Chugging Along
The U.S. economy is grudgingly advancing. Economists now anticipate that our economic recovery will only slowly recover from the coronavirus pandemic. There is mounting evidence that the pandemic has cost a loss of inflicted [...]
America’s diverging views about the economy
The confusion about the status of the American economy and prescriptions to fix it has merit. The United States is in a recession, but this downturn is unlike any our country has ever witnessed. There [...]
American economy contracted at record rate
The Commerce Department last week reported the steepest-ever decline in the U.S. gross domestic product. The value of goods and services fell at an annual 32.9% in the second quarter, wiping out nearly five years [...]
The Virus Turns New York City Into a Ghost Town
The Time Life Building Only Has 500 workers showing up in comparison to Pre-Pandemic 8,000 The Rockefeller Center Ecosystem of Restaurants and Shops, created to serve Midtown workers and tourists, has gone dark Introduction: [...]
In Atlanta, Violent Crime Surges Amid Rising Unemployment, by Sabrina Simmons, Wall Street Journal
A recent wave of violent crime has roiled the city of Atlanta, amplifying tensions in a community still reeling from the coronavirus pandemic and a debate over policing and race. Atlanta’s problems highlight the [...]
Skepticism mitigates confidence following retail sales increase of 7.5%
In June, retail sales increased by 7.5%. Retail sales account for about a quarter of all consumer spending. The reopening of malls, restaurants, and other service industry positions allowed millions of people to return to [...]
Pandemic brings significant challenges to airline industry
On Wednesday, United Airlines said that it is expecting to lay off close to 50% of its U.S. domestic workforce. United is not alone. American Airlines may have to cut 20,000 jobs, and Delta has [...]
Despite surge in coronavirus cases, U.S. enjoys a precarious job recovery
On Thursday the Labor Department reported that we added 4.8 million jobs in June, reducing our unemployment rate slightly to 11.1%. This is our second month of job growth after losing 20 million jobs earlier [...]
U.S economic outlook remains mixed despite estimates that 20 million Americans may have contracted the coronavirus
As we approach the midyear, the future direction of our economy remains mixed. The renewed national upsurge in COVID-19 cases has forced some states and cities that have reopened to reverse course. President Donald Trump [...]
Coronavirus Uptick Raises Alarms
The reclosing of eleven Apple stores in four states on Friday highlighted the growing concerns that the coronavirus is gaining ground. Scientists have expressed anxieties that the U.S. has replaced Italy and China as [...]
Fed Outlook Dim into Next Year
Last Wednesday Federal Reserve Chairman Jerome Powell said: “This (COVID-19) is the biggest shock in the U.S. and in the world in living memory. We went from the lowest level of unemployment in 50 [...]
Federal Reserve forecasts negative outlook for U.S. economy beyond 2020
Last Wednesday Federal Reserve Chairman Jerome Powell said: “This (COVID-19) is the biggest shock in the U.S. and in the world in living memory. We went from the lowest level of unemployment in 50 years [...]
Economic numbers remain in doldrums
Over the past few days, economic releases have highlighted the damage caused by the coronavirus pandemic. On Friday, we learned that consumer spending dropped a record 16.4%. On Thursday, the Labor Department reported that 36.5 [...]
Europe Faces Worst Recession Since World War II
On Wednesday, the European Commission projected that Europe’s economy will decline by 7.4% this year. Unfortunately, this downturn far exceeds the financial crisis of 2008, when the Eurozone’s economy shrank by 4.5%. Currently, economists expect [...]
America needs to establish a national holiday to commemorate the devastation wrought by the coronavirus pandemic
Before we address our dire economic status we need to mourn the terrible toll caused by the coronavirus pandemic. More than 1 million Americans have tested positive and 60,000 have died. During the Civil War, [...]
Federal Reserve Launches $2.3 Trillion Program to Support U.S. Economy
On Thursday, the Federal Reserve announced a monumental $2.3 trillion program to provide funds for businesses and municipal governments. To underscore its efforts, Jerome Powell, the chairman of the Federal Reserve, issued a statement: [...]
Rising Expectations for Serious Economic Crisis in the U.S.
U.S. policymakers now anticipate that our country will experience the worst economic crisis since the Great Depression. The U.S. is at the center of the global pandemic. According to data compiled by John Hopkins [...]
Putting the $2 Trillion Coronavirus Aid Package into Perspective
President Trump signed a $2.2 trillion bill — the largest relief package in history — that hopefully will stabilize our coronavirus-battered economy. However, despite the enormous efforts on both the fiscal and monetary side, [...]
New York Outbreaks Worse than Wuhan’s – New York Times
Today’s New York Times reported that if the rate of growth in coronavirus cases in the New York metro area continues, it will suffer a more severe outbreak than those experienced in Wuhan, China [...]
The United States Braces for a Drastic Economic Slowdown
We now have a consensus that the United States, along with the world economy, will enter into a severe recession, surpassing the 2007-2008 slumps. Forecasting when the recession will begin is notoriously difficult; however, [...]