Unemployment
Inmflation>So, both initial and continuing unemployment claims rose last week, though only by a bit.
More significantly, inflation continues to spike, and consumer spending and GDP for the last quarter was adjusted down which means that Trump's new pet Fed Chairman is likely not going to convince the rest of the FOMC to cut rates.
US inflation increased at its fastest pace in three years in April, driven by higher energy prices amid the war with Iran, and cementing economists’ views that the Federal Reserve could hold interest rates unchanged well into next year.
Surging price pressures are eroding household income and could restrain consumer spending and economic growth this quarter. Income at the disposal of households after adjusting for inflation dropped for a third straight month in April, other data showed on Thursday. Given the soaring cost of living, Americans are growing frustrated with Donald Trump’s handling of the economy. A Reuters/Ipsos survey last week showed the president’s approval rating fell to nearly its lowest level since he returned to the White House, hit by a drop in support among Republicans. Trump won the 2024 presidential election in large part because of his promise to lower inflation.
The government on Thursday also revised down the growth pace in consumer spending in the first quarter to 1.4% from the previously reported 1.6% annualized rate. Overall gross domestic product (GDP) growth was slashed to a 1.6% rate from the 2.0% pace estimated last month.
So it's beginning to look like Stagflation, and elections are 5¼ months away.
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