The recession has driven more of a wedge between high and low-end consumers as middle class workers, earning between $50,000 to $140,000 a year, lag behind and enter into the low-income bracket. [Wall Street Journal]
Tag Archives: economy
P&G new growth strategy reveals diminishing middle class
View this update
| View all consumer, economy updates
Operation Twist: Fed considers alternative to quantitative easing, looks to long-term securities
As Fed officials gear for meetings on Sept. 20 and 21, alternative policies are being considered for economic recovery. “Operation Twist,” which has been gathering buzz both in and outside the Fed, aims to modify the country’s portfolio so that it includes more long-term securities with lower rates. [Wall Street Journal]
Swiss bank sets cap on franc amid concerns of slowdown
In response to agitated investors seeking refuge in the franc, the Swiss National Bank set an exchange rate cap of to 1.2 to the euro in order to prevent a recession. The SNB announced that it would also be buying unlimited quantities of foreign currencies. [Reuters]
New White House projections reveal lowered U.S. deficit
The report released Thursday states that the U.S. deficit will be cut by $300 billion through the next year and $1.5 trillion over the next decade. White House Budget director Jacob Lew stated that the country needs to invest in jobs growth to prevent an economic slowdown. [Washington Post]
Obama to give jobs speech before NFL game
The President accepted House Speaker Boehner’s invitation to address a joint session of Congress Thursday September 8 at 7 p.m. ET. [National Journal via @Drudge]
New record reveals Fed officials divided on economic recovery efforts
View this update
| View all economy updates
Records from an August 9 meeting released Tuesday show that while some officials support implementing a bond-buying program to stimulate the economy, others view the action as too aggressive. [Wall Street Journal]
Consumer confidence takes a dip in August
View this update
| View all economy updates
The Conference Board, a private research group, reported that August’s index of consumer confidence dropped nearly 15 points since July 2011, hitting a new low since April 2009. It now stands at 44.5. [Wall Street Journal]
Obama to deliver new jobs initiative next week
President Obama nominated Princeton economist and labor expert Alan Krueger to head the Council of Economic Advisers Monday. With the last member put in place, the White House says the President will reveal the outlines of a new jobs agenda in a speech next week. [Washington Post]
Congressional Budget Office Projects Slow Economic Growth Through 2012
The non-partisan budget agency released its annual summer budget update of the Budget and Economic Outlook Wednesday. The report forecast that the U.S. economy would grow by 2.3% this year and 2.7% the following year. The budget deficit remains at trillion-dollar levels this year, but the total deficit will be reduced in the next several years due to the debt ceiling legislation implemented earlier in the month. [USA Today, CBO, Photo courtesy: Worradmu]
France, Belgium, Spain and Italy to Enact Ban on Short Selling
The European Securities and Markets Authority announced that the four European countries to ban short selling will enforce the new measures tomorrow. [Bloomberg, Photo credit: worradmu]
Pelosi Names Last 3 Members to Deficit Reduction Super Committee
The Democratic Minority Leader of the House picked Reps. James E. Clyburn (D-S.C.), Xavier Becerra (D-Calif.) and Chris Van Hollen (D-Md.). 10 of the 12 new panel members voted for the debt ceiling compromise. Sen Pat Toomey (R-PA) and Rep. Becerra voted against it. [Washington Post]
Jobless Claims Drops Below 400K
View this update
| View all economy updates
U.S. Labor Department data released Thursday revealed that claims for jobless benefits dropped below 395,000 for the first week of August, a level not seen since April. Economists mark 400,000 as the threshold needed to help those unemployed. [National Journal]
Market Closes with 180 Degree Turn, Setting New 2-Year Record
After Monday’s market slump, a Tuesday Fed report ensuring the central bank’s commitment to keep interest rates low through 2013 propelled investors to activity. Standard and Poor’s 500 Index saw an increase of 4.8% by 4 p.m., a great turnaround from its loss of 6.7% yesterday. [Bloomberg]
Fed Prepared to Keep Interest Rates Low through 2013
A new Federal Reserve report stated that the agency would be willing to implement policy tools should the U.S. economy need aid. The central bank has kept short-term interest rates at near zero levels and purchased $2.5 trillion worth of Treasuries and mortgage-backed securities to ease long-term interest rates. [New York Times]