Connect with us

News

US inflation reached 7.9% in February hitting new 40-year high

Published

on

US inflation reached 7.9% in February hitting new 40-year high

US shopper worth progress approached 8 per cent final month forward of a surge in power costs following Russia’s invasion of Ukraine, elevating strain on the Federal Reserve to extra substantively tighten financial coverage.

The patron worth index elevated one other 0.8 per cent between January and February, following a 0.6 per cent month-to-month improve within the earlier interval, the Bureau of Labor Statistics stated on Thursday. Costs have been fuelled by greater power, meals and shelter prices.

From a yr in the past, costs are up 7.9 per cent, the quickest annual improve since January 1982. As soon as extremely unstable gadgets like meals and power have been stripped out, “core” CPI jumped 6.4 per cent over that interval, or 0.5 per cent on a month-to-month foundation.

The newest report captures the interval simply earlier than Russia launched a full-scale assault on Ukraine and western allies unveiled among the many most punitive monetary penalties ever levied on a rustic, together with a US ban on Russian power imports.

The actions triggered international power markets to grab up, sending fuel and oil costs rocketing. Costs for wheat, nickel and different commodities additionally soared.

Advertisement

Even earlier than the invasion, a 6.6 per cent soar in gasoline costs accounted for practically a 3rd of the month-to-month CPI improve, based on the BLS. The broader power index rose 3.5 per cent in February, a considerable pick-up from the 0.9 per cent improve in January. Vitality costs at the moment are roughly 25 per cent greater than the identical interval a yr in the past.

Meals costs climbed by probably the most since April 2020, rising one other 1 per cent month-on-month in February as all six main grocery retailer meals indices reported positive factors. The broader index is up practically 8 per cent up to now 12 months.

Greater than 40 per cent of the month-to-month improve in core CPI stemmed from a 0.5 per cent soar in shelter prices, the BLS stated, with lease up one other 0.6 per cent and resort bills up 2.2 per cent after a decline in January.

House owners’ equal lease, a measure of what householders consider their properties would lease for, rose 0.4 per cent for a 4.3 per cent annual improve. These positive factors partially offset a decline in used automotive costs and a few medical providers.

The conflict in Ukraine is predicted to push general inflation even greater and delay the height within the tempo of shopper worth progress that was broadly anticipated later this yr.

Advertisement

Economists concern {that a} extended disaster couldn’t solely dent progress, but additionally additional entrench inflationary pressures which have already begun to take root throughout a broad swath of the economic system.

“The buzzword is stagflation,” stated Alex Veroude, chief funding officer for North America at Perception Investments, referring to a state of affairs of slowing progress and rising costs. Although he stated it isn’t but clear if such an atmosphere will emerge nor how the Fed will reply.

Market measures of inflation expectations have moved greater in latest days to mirror these considerations, with the favored two-year break-even charge climbing above 4 per cent after the invasion.

A swap charge that measures what five-year inflation expectations might be in 5 years’ time has additionally jumped, and at 2.7 per cent is effectively above the Fed’s 2 per cent core inflation goal.

Geopolitical tensions are usually not anticipated to knock the Fed off track, with merchants nonetheless pencilling in a minimum of six rate of interest will increase this yr. Nevertheless, the battle might complicate the trail ahead for coverage after the primary adjustment.

Advertisement

The Fed is about to proceed with a quarter-point rate of interest this month, and can then search to maneuver the federal funds charge nearer to a degree that neither aids nor constrains financial exercise — often known as impartial charge and estimated to be between 2 and a couple of.5 per cent.

Half-point rate of interest will increase, which haven’t been utilized in greater than twenty years, are firmly on the desk for a number of conferences, Powell stated. He additionally acknowledged that it could be applicable to elevate charges above impartial, growing the chance of a recession.

Brian Smedley, chief economist at Guggenheim Companions, expects the Fed to proceed cautiously, nonetheless, regardless of having to grapple with an “huge commodity provide shock” that he says is more likely to additional increase inflation.

“Given the massive improve in uncertainty that markets are grappling with in addition to companies and customers, this eases the strain on the Fed to do something greater than a 25 foundation level hike,” he stated.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

Vladimir Putin is ready for summit with Donald Trump, says Kremlin

Published

on

Vladimir Putin is ready for summit with Donald Trump, says Kremlin

Unlock the White House Watch newsletter for free

Russia’s president Vladimir Putin is ready to meet Donald Trump but has yet to agree a date, the Kremlin said on Friday, after the US president-elect said the two sides were preparing a possible summit.

The comments by Dmitry Peskov, Kremlin spokesperson, came after Trump answered questions about a possible meeting with Putin by saying “we’re setting it up”, while adding he would prefer to wait until after his inauguration on January 20.

“President Putin has repeatedly declared his openness to contacts with international partners, including the US president and Donald Trump”, Peskov told the press, according to the Interfax news agency.

Advertisement

He added: “It looks like some progress will be made after Mr Trump takes the Oval Office.”

Outgoing US President Joe Biden cut off direct communication with Putin following the start of the Russia’s full-scale invasion of Ukraine in 2022.

Asked about a possible summit at his Mar-a-Lago Florida resort or elsewhere, Trump said after a meeting with Republican governors on Thursday: “President Putin wants to meet — he’s said that even publicly — and we have to get that [Ukraine] war over, that’s a bloody mess.”

The president-elect described the death toll as “staggering” and added: “It’s a war that I’m going to try really to stop as quickly as I can.”

Pushing back his campaign pledge to end the war in “24 hours”, Trump suggested this week that six months was a more realistic target to bring hostilities to an end.

Advertisement

European leaders and officials have been making the case to the president-elect and his team that continued US military aid is needed to put Kyiv in a stronger position for peace talks and help bring Moscow to the negotiating table.

According to a former senior Kremlin official and another person who has discussed the issue with the Russian president, Putin’s main goal in any talks is new security agreements to ensure Ukraine never joins Nato and that the US-led military alliance pulls back from some eastern deployments.

“He wants to change the rules of the international order so there are no threats to Russia. He is very worried about how the world will look after the war,” the former Kremlin official said. “Trump wants to roll back Nato anyway. The world is changing, anything can happen.”

Western officials including Nato secretary-general Mark Rutte have sought to stress the importance of Trump ensuring “peace through strength” in Ukraine, and avoiding a defeat for Kyiv that would embolden Putin and his allies in China, Iran and North Korea.

Advertisement
Continue Reading

News

Trump set for sentencing in his New York felony conviction

Published

on

Trump set for sentencing in his New York felony conviction

President-elect Donald Trump looks on during Turning Point USA’s AmericaFest at the Phoenix Convention Center in December 2024 in Phoenix, Ariz.

Rebecca Noble/Getty Images


hide caption

toggle caption

Advertisement

Rebecca Noble/Getty Images

After months of legal twists and turns, Donald Trump’s most active criminal case is finally reaching a conclusion.

The former and future president is scheduled to appear in a Manhattan courtroom on Friday for his sentencing on 34 felony counts of falsifying business records to conceal a payment to an adult film star.

Trump on Thursday exhausted his last legal maneuver to stop the sentencing, after a narrow majority of Supreme Court justices declined to intervene.

Advertisement

The hearing comes just 10 days before Trump is expected to be sworn in as the 47th president of the United States. He had argued the sentencing would interfere with his ability to govern.

In light of that, New York state Judge Juan Merchan has indicated he does not plan on sentencing Trump to prison or even probation, and is instead likely to offer an “unconditional discharge,” meaning the president-elect must do nothing, but the conviction will remain on his record.

Prosecutors have signaled the hearing could be short — less than an hour — and that Trump is expected to attend the hearing virtually.

“There’s nothing else that the defendant has to do, and therefore it’s the least restrictive in terms of how it could impede in any way on the president-elect as he takes office,” Anna Cominsky, director of the criminal defense clinic at New York Law School, said about the expected sentence of an unconditional discharge.

“It certainly makes sense that there be some finality to this case because as a nation, we should want to move on, in particular as he assumes the role of president, and be able to look forward to the next four years without this sentence pending,” Cominsky said. “There has to be an end.”

Advertisement

Of course, Trump’s legal team is likely to appeal the conviction and sentence again — as they have done throughout the legal proceeding. Appeals could stretch on for years.

Since Trump’s conviction in May, Merchan has postponed the sentencing several times, including to avoid any perception of political bias ahead of Election Day, and then to allow Trump to argue he had immunity in the case, based on a Supreme Court ruling on presidential immunity.

Merchan ultimately denied the immunity claims, and the dismissal, paving the way for the hearing on Friday.

Fundraising haul

In May, Trump became the first former or sitting U.S. president to be tried on criminal charges and be convicted.

The jury in Manhattan state court heard from 22 witnesses during about a month of testimony in Manhattan’s criminal court. Jurors also weighed other evidence — mostly documents like phone records, invoices and checks to Michael Cohen, Trump’s once loyal “fixer,” who paid adult-film star Stormy Daniels to keep quiet about her story of an alleged affair with the former president.

Advertisement

After about a day-and-a-half of deliberations, the 12 jurors said they unanimously agreed that Trump falsified business records to conceal a $130,000 hush money payment to Daniels in order to influence the 2016 presidential election.

But the conviction appeared to have little impact on Trump’s popularity — and ultimate electoral victory during the 2024 presidential election. He has used the legal drama to mobilize donations for his campaign and mounting legal fees.

Within 24 hours of the guilty verdict, Trump’s campaign boasted of raising millions of dollars.

And 49% of the nation’s voters in November’s election ultimately chose to bring Trump back to the White House.

Advertisement
Continue Reading

News

Mapping the Damage From the Palisades Fire

Published

on

Mapping the Damage From the Palisades Fire

More than 5,000 structures have been destroyed by the Palisades fire, California officials said on Thursday. An analysis of satellite images by Microsoft offered a glimpse of the devastation in one section of Pacific Palisades, a wealthy neighborhood between Malibu and Santa Monica.

Source: Microsoft AI For Good Lab analysis of satellite imagery from Planet Labs using building footprints from Overture Maps Foundation and Microsoft

Note: Fire perimeter as of Jan. 8 at 1:17 p.m. Pacific time. Satellite imagery taken Jan. 8 at 2:21 p.m. Pacific time.

By The New York Times

Advertisement

In this one area alone, there appeared to be more than 2,000 buildings that were damaged or destroyed, according to the analysis.

The results of the analysis are estimates, and they are limited by the presence of wildfire smoke partially obscuring satellites.

As firefighters continued on Thursday to battle the Palisades and major wildfires burning across the Los Angeles area, the full scope of the damage remained unclear. But officials said the Palisades and the Eaton fire, burning to the east near Pasadena, were likely among the most devastating fires in the state’s recorded history. Officials suggested that 5,000 buildings may have also burned because of the Eaton fire.

The Palisades fire began on Tuesday and quickly grew. By Thursday, it had charred more than 20,000 acres, and remained out of control.

Source: Cal Fire By The New York Times

Advertisement

Aerial photographs of Pacific Palisades showed that the fire leveled whole swaths of the neighborhood near the Palisades Village shopping mall, north of Sunset Boulevard.

Source: photograph by Mark J. Terrill/Associated Press

By The New York Times

Widespread damage was also visible in this section of the Pacific Palisades south of Sunset Boulevard, bordered by the Pacific Coast Highway to the south. Only a few houses appeared to be standing amid the destruction.

Advertisement

Source: photograph by Mark J. Terrill/Associated Press

By The New York Times

Across the city, the Eaton fire continued to burn uncontrollably as well. It encompassed more than 13,000 acres by Thursday evening, forcing nearby residents to evacuate.

Advertisement
Continue Reading

Trending