Archive for the ‘Shock’ tag
Initial Jobless Claims are "Useless" Due to Distortion, Economist Says
Claims for unemployment benefits in the U.S. rose to their highest
level since March 2002 with 455k initial claims reported
in the week ending Aug. 2, but economists say new rules that make it
easier to file a claim is putting upward pressure on the figures.
“The larger than expected rise is not a complete shock,” said TD
Securities economics strategist Charmaine Buskas. “The labor department
did recently announce a 13 week extension to the benefits period and this
has clearly caused a huge influx of re-filers.”
CIBC’s Rubin Sees U.S. Inflation Hitting 6%
Headline inflation in the United States could be
headed as high as 6% before the end of the year, CIBC chief economist
Jeff Rubin warns in a forecast published Wednesday.
“We haven’t seen a 6% CPI inflation rate posted in
the U.S. since 1990 and even then only briefly for four months,” wrote
Rubin. “You’ve got to go back to 1982, in the midst of the stagflation
that followed the second OPEC oil shock, to see …”
Fed’s Stern Says Inflation Expectations Based on How Fed Raises Rates
Minneapolis Fed President Gary Stern said on Wednesday that
inflation expectations will be determined by how the
Federal Reserve raises rates.
On housing, Stern said the housing downturn looks
more severe than the 1990s shock, noting that the residential housing
inventory remains large and the housing adjustment is ongoing…