All The New Economy
Short government shutdown? Small hit to economy. Long one? A recession.A government shutdown would reduce GDP growth by an estimated 0.2 percentage points for every week it goes. Earlier congressional actions on the payroll tax expiration and the sequester have already weakened economic growth, as seen by the latest numbers.
Bullard: Fed could soon taper after all. This week in the economy.Fed decision not to taper buoyed Wall Street, but James Bullard, head of the Federal Reserve Bank of St. Louis, says a cutback in bond-buying could come as early as next month, depending on the economy. Also this week, housing posts mostly strong numbers, JPMorgan agrees to nearly $1 billion settlement, and the owner of Olive Garden and Red Lobster cuts jobs.
Bernanke, Fed say no taper. Will housing bounce?The Federal Reserve and Fed Chief Ben Bernanke surprised Wall Street by announcing the Fed would not reduce its stimulus purchases to boost the economy. Because mortgage rates had surged in anticipation of a Fed move, Wednesday's announcement could send mortgage rates down and give the housing market a big bounce.
Poor retail sales hint at slowdown: this week in the economyRetail sales rose 0.2 percent in August, half the rate analysts expected. Consumer sentiment falls, mortgage rates rise, and Obama administration denies report that it has picked a new Fed chairman.
Midway Airport lease deal: Maybe later, mayor saysMidway negotiations end as one bidder drops out and Chicago Mayor Emanuel calls it quits. Also this week in the economy: unemployment falls for the wrong reasons; Beige Book reveals modest to moderate economic growth; and Yahoo! picks a new logo.
Is Obamacare creating a nation of part-time workers? It's iffy, jobs numbers say.August jobs report, other studies weaken notion that part-time workers will become a bigger part of the economy. The Obamacare effect also seems limited, but jobs data are too volatile to say for sure yet.
A snag for housing. An 'oops' from Dunkin'. This week in the economyWeak housing numbers released this week have some analysts worried that the housing recovery is losing momentum. Personal income lags, durable goods fall, and Dunkin' Donuts gets in hot water for a 'blackface' ad campaign in Thailand.
Steve Ballmer to retire from Microsoft: this week in the economyA controversial CEO, Ballmer has struggled to keep Microsoft relevant as the Internet and smartphones pass the PC by. Also this week: Fed minutes released, housing sales send mixed signals, J.C. Penney gets 'poison pill.'
New home sales plunge. Is the housing recovery slowing?New home sales fell a whopping 13.4 percent in July, an unexpected drop that has darkened the sunny outlook for the US housing recovery. Climbing mortgage rates and higher prices could be to blame.
Existing home sales surge 6.5 percent in July. That's huge, but can it last?Existing home sales leaped 6.5 percent in July, their highest level since last 2009 when a tax credit artificially boosted sales. But some analysts worry that rising interest rates and continuing low inventory could put a damper on existing home sales in the coming months.
In with the old? California gets new newspaper. Patch news sites cut back.Second newspaper starts up in Long Beach, while online news provider Patch slashes its staff. Yahoo's online-savvy CEO makes a fashion statement – in a magazine. This week in the economy.
Retail sales: a small but hopeful riseRetail sales rose 0.2 percent in July. It's a meager total, but a bounce back for "core" retail sales hints at accelerated consumer spending.
Social Security is a model, not a failure, for Washington budgetmakingThirty years ago, President Reagan signed bipartisan Social Security reforms that raised taxes and kept the system solvent for decades, while Congress overspent in other areas and cut taxes. So who should pay for the next Social Security reforms?
Obama addresses his choices for Fed post: This week in the economyNext Federal Reserve chairman must strongly support central bank's dual mandate, president says, and right now that means boosting employment. Also this week: jobless claims rise, credit card debt falls, and drama unfolds at J.C. Penney.
If Obama eliminates Fannie Mae, Freddie Mac, will mortgage rates go up?President Obama wants to reduce the government's role in the mortgage giant by phasing out mortgage financing giants Fannie Mae and Freddie Mac. The idea has broad support, but interest rates on home loans would go up, especially for low-income families.
US creates 162,000 more jobs, but with fewer hours, less payUS unemployment rate drops to 7.4 percent, but hours worked and wages drop slightly in July. Also this week in the economy: Stock market hits new record and tech world eyes Google's new hardware offerings
Obama's new grand bargain: Does the economy need it?In a shift, President Obama offers Republicans a new 'grand bargain' – cuts in corporate taxes in exchange for a jobs program. The recovery in the labor market makes Obama's jobs program a tougher sell.
Housing starts fall in June, but there's a silver liningHousing starts fell sharply in June, with US builders starting work on fewer single- and multi-family homes. But there was some good news for the housing recovery: Permit applications for single-family homes hit a five-year high.
Retail sales disappoint in June. Is the payroll tax pinch finally here?Retail sales increased for the third straight month in June, but fell well short of expectations. The retail sales report might hint that consumers are feeling the delayed effects of January's payroll tax hike, according to some analysts.
Should the government make you save for your retirement?Fewer younger workers are saving for retirement today than a decade ago, prompting some financial leaders to call for mandated retirement saving beyond Social Security. Many financial advisers aren't convinced it's a good idea.
