In recent weeks there has been a massive swing from pricing in a recession. The swing has been mostly noticeable in the bond market where the 10 year treasury bond yield has gone back to the percentage it was at last year which was around 4.0%. Investors have concerns as stocks are continuing to lower in the past few weeks, but they have been able to avoid major losses. The outcome of the economy in the future still remains uncertain and there are many possibilities for the fed. With this year off to a strong start to the economy salaries and wages are surpassing inflation at the moment.
The economy has gone up substantially since the beginning of last year, we are on a good path to stabilizing inflation and the economy with it. Wages have gone up and with them going up inflation is slowing not affecting ast much because prices have for the most part stayed the same. I expect to rise more as the year continues.
3 comments:
I agree with the fact that US households are slowly getting the economy up to its feet. As you mentioned, Bond yields have risen, with short-term Treasuries now yielding more than 5% for the first time since 2007 as markets price in higher Fed interest rates. The unemployment rate is 3.4%, wages have been rising, albeit not as quickly as inflation, and even though we saw massive layoffs in major big tech companies, the number of available jobs actually increased in the most recent reading. Social Security recipients saw their payments rise 8.7% in January as a result of the 2022 inflation rate. As we know consumers are major influencers and account for nearly 70% of the economy. With so many jobs available, consumers may be able to keep the economy running for longer than expected
Overall good post! I think that it feels good to receive some good news concerning the economy! I feel as though since many of us started college, we have seen a lot of negative impacts on the economy and not a lot of positive ones. I know for me personally, I have witnessed a lot of ups and downs and a lot of concerns that we had begun a recession, especially after covid. It feels good to have at least a nugget of good news, I do hope inflation continues to slow down as well as prices begin to regulate.
This is a really interesting topic. I don't look too much at the housing market so it was interesting to read about the positive impacts that it has on the economy. It is reassuring that positive economic change is happening.
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