US inflation expected to keep running hot: Traders see 4 straight months of roughly 9% or higher CPI readings

Just a day after Federal Reserve policy makers delivered their biggest rate hike in 28 years, the US inflation outlook continues to look dire in one obscure part of the financial market. Traders of so-called fixings, or derivatives-like related instruments to Treasury inflation-protected securities, expect four straight months of annual headline consumer-price index readings at … Read more

Some homes in Provo, Utah, drew 50 offers at the peak of housing boom. Economists are now warning of ‘overvalued’ property markets.

Moving to Utah was a no-brainer for Leola Broussard. Broussard, who previously rented a home from a friend in the pricey Stanford–Palo Alto area south of San Francisco, where housing costs, she told MarketWatch, are “just totally outrageous.” Over the two years of the pandemic, many Americans, like Broussard, have flocked to Utah, seeking bigger … Read more

Stagflation concerns mount: Americans are increasingly worried about red-hot inflation, jobs and their own deteriorating finances

Consumer inflation expectations are back at record highs, but people have no plans to slow their spending, according to a regional Federal Reserve bank survey released Monday. Households saw a 6.6% median inflation rate in the year ahead, setting a record high first set in March, according to the Federal Reserve Bank of New York’s … Read more

Tightening of financial conditions accelerates, recession fears grow as May CPI report becomes multi-day trading event

Financial markets convulsed on Monday as investors considered the prospects of US inflation accelerating, not decelerating, after the release of May’s consumer-price index report. Signs of the sentiment shift since Friday’s data release were evident in the fast-paced tightening of financial conditions, plus an outlook for more aggressive Federal Reserve rate hikes. Gains in the … Read more

The ‘best’ and ‘worst’ places in America for first-time home buyers

Angelenos, congratulations — you officially live in one of the worst metro areas for first-time home buyers, according to a new study by Out of the 50 largest metro areas studied, Los Angeles ranked 49th in affordability, 48th in employment factors, 30th in safety, and 39th in housing-market tightness, as the supply of homes … Read more

Dow tumbles as inflation reading triggers market shock waves: What investors need to know

From Wall Street to Main Street, fears that the US economy could be sliding into 1970s-style “stagflation” have been percolating. References to the sticky situation appeared in news headlines all week. The Associated Press called it “the dreaded ‘S’ word.” The Wall Street Journal’s remembered readers of the neologism origins as a catchy way to … Read more

Persistent Inflation Drags on US Stocks

A fresh inflation shock hammered stock and bond prices anew, heightening investors’ fears that the Federal Reserve could be forced into more drastic action to tame surging consumer-price increases. Declines hit across the board, with rising interest-rate expectations increasing worries about the possibility of the economy slipping into a recession. The Dow Jones Industrial Average … Read more

Investors may be in for this rude surprise: History shows inflation can take years to return to normal even when Fed hikes above 10%

History can be a powerful tool, particularly in a high-inflation environment like this one in which no suitable economic model seems to apply. Inflation — running at 8.3% as of April, near a four-decade high — has stayed stubbornly persistent for a full year to the surprise of virtually everyone who tracks it. Now there’s … Read more

Exclusive: Fed’s Bostic says idea of ​​September pause is not tied to any looming market rescue

Atlanta Fed President Raphael Bostic, in an exclusive interview with MarketWatch, said his suggestion that the central bank take a September “pause” in its push to raise interest rates should not be constructed in any way as a “Fed put,” or belief that the central bank would come to the rescue of markets. In a … Read more

After 2 stormy years of ‘moonshot’ house prices, don’t hold out hope for a major correction. Why COVID-era property values ​​may be here to stay.

There is hope for first-time buyers looking to enter the US housing market, but observers say they will have to be patient. After a two-year surge in home prices during the COVID-19 pandemic, the market is finally showing signs of cooling — in terms of demand and sales, if not those persistently high housing prices … Read more