Federal Reserve to keep interest rates above 4% beyond 2023, economists predict
Colby Smith and Caitlin Gilbert, Financial Times
FT-IGM Survey forecasts central bank will prolong its aggressive campaign against decades-high inflation.
Larry Summers urges the Fed to keep raising rates – and warns that hiking too slowly risks an economic disaster
Theron Mohamed, Insider
The Federal Reserve needs to keep hiking interest rates to crush inflation and avoid an economic disaster, Larry Summers has warned. “We’ve got a substantial underlying inflation problem that doesn’t come out without very substantial monetary policy adjustment,” the economist told Bloomberg on Friday.
Fed prepares to update racing odds as inflation bucks the reins
Howard Schneider, Reuters
The Federal Reserve, after chasing inflation for the better part of a year, will look ahead as far as 2025 in new projections this week that will show more fully the depth and length of the economic “pain” its policymakers expect to be needed to stop the current surge in prices.
Jobless Rates Tick Up on East Coast, Led by New York City
Alex Tanzi, Bloomberg
While unemployment in the US remains near historic lows, jobless rates are edging up on the East Coast — and particularly in New York City, where it remains well above its pre-pandemic level.
Worker shortages are fueling America’s biggest labor crises
Abha Bhattarai, The Washington Post
The U.S. economy came within hours of shutting down because of a standoff between unions and railroad carriers over sick pay and scheduling, highlighting just how dramatically staffing shortages have reshaped American workplaces and driven exhausted workers to push back.
High Food Prices Are Getting to People. The Scene at One Grocery Store Shows Why.
Rachel Wolfe, The Wall Street Journal
To understand how people are navigating inflation these days, go to a grocery-store parking lot. An afternoon spent talking with shoppers and reviewing grocery receipts outside of Rouses Market in Houma, nearly 60 miles southwest of New Orleans, painted a picture of the trade-offs and difficult decisions families are facing to afford steadily rising food bills.
Dollar’s Rise Spells Trouble for Global Economies
Chelsey Dulaney et al., The Wall Street Journal
The U.S. dollar is experiencing a once-in-a-generation rally, a surge that threatens to exacerbate a slowdown in growth and amplify inflation headaches for global central banks.
Work-life policies are increasingly high-stakes economics
Emily Peck, Axios
Work-life policies like paid sick and medical leave, as well as reasonable hours and scheduling, are becoming a more high-stakes economic issue, as in-person workers exercise their increased leverage in a tight labor market — and cope with more than two years of working on the front lines of a pandemic.
