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Economy

AP News | Equities.com |

Consumer spending was flat in May while incomes dropped for a second month as the impact of the government’s individual impact payments waned. Inflation, however, posted a sizable gain of 0.4%.

Consumer spending was unchanged in May, a marked slowdown following gains of 0.9% in April and a 5% surge in March that had been fueled by distribution of payments of up to $1,400 per individual from a $1.9 trillion stimulus bill, the Commerce Department reported Friday.


AP News | Equities.com |

The U.S. economy grew at a solid 6.4% rate in the first three months of the year, setting the stage for what economists believe may be the strongest year for the economy in about seven decades.

Growth in the gross domestic product, the country’s total output of goods and services, was unchanged from two previous estimates, the Commerce Department said Thursday, an acceleration from the 4.3% pace of the fourth quarter.


AP News | Equities.com |

Federal Reserve Chair Jerome Powell on Tuesday responded to concerns from Republican lawmakers about spiking inflation by reiterating his view that current price increases will likely prove temporary.

Consumer prices jumped 5% in May compared with a year earlier, the largest increase in 13 years. Republican House members have sought to blame higher inflation on President Joe Biden’s $1.9 trillion economic relief package, approved in March, in an effort to retake the House next year.


AP News | Equities.com |

Gas prices have whizzed past $3 per gallon in much of the nation. The cost of used cars and new furniture, airline tickets, department store blouses, ground beef and a Chipotle burrito are on the rise, too.

Many economists say the price increases are fueled by the aftereffects of a global pandemic and probably won’t last. But Republicans are hoping to storm into next year’s midterm elections arguing that steep government spending under President Joe Biden and a Democratic-controlled Congress has triggered inflation that will ultimately hurt everyday Americans.


Kimberly Redmond | Equities.com |

US consumer borrowing continued to grow throughout the month of April, but credit card usage declined, according to newly-released data from the Federal Reserve Board.

In its G.19 consumer credit report for April, the Fed said total consumer debt outstanding — which includes student loans and auto loans, as well as revolving debt — grew $18.6 billion.


Reuters | Equities.com |

Global money market funds attracted heavy investment flows in the week to June 2, as investors were cautious about the likelihood of global central banks tapering their monetary stimulus policies amid a rise in inflation levels.

According to Refinitiv Lipper data, money market funds had net purchases of $20.5 billion, making a fourth successive week of inflows.


Kimberly Redmond | Equities.com |

The number of Americans filing for initial job loss claims fell below 400,000 for the first time since the onset of the COVID-19 pandemic in March 2020.

On Thursday, the US Labor Department reported that the number of first-time claims dropped to 385,000 for the week ending May 29, down 20,000 from the prior week.


Kimberly Redmond | Equities.com |

Chief executive officers at the country’s biggest companies saw an average pay increase of 5% in 2020, even as the COVID-19 pandemic wreaked havoc on businesses across the globe.

According to the annual CEO Pay Study compiled by The Associated Press and executive data firm Equilar, median pay for S&P 500 CEOs last year was $12.7 million, a record high since they first began compiling the analysis 10 years ago.


AP News | Equities.com |

Far more Americans are receiving unemployment benefits than the last time the jobless rate was at the current 6.1%, thanks to a major expansion of the federal safety net that has provided aid to millions of people out of work.

Yet many businesses and Republican officials say all that jobless aid has contributed to worker shortages in some industries, which is why most GOP-led states are moving to cut off the federal support.


AP News | Equities.com |

Fewer Americans sought unemployment benefits last week — the latest encouraging sign for the rebounding U.S. economy — just as Republican-led states are moving to cut off a federal benefit for the jobless.

Twenty-two states, from Texas and Georgia to Ohio and Iowa, plan to begin blocking a $300-a-week federal payment for the unemployed starting in June, according to an Associated Press analysis. All have Republican governors and legislatures.