The U.S. labor market report for August 2026 showed a strong labor market with the unemployment rate falling to a historically low 4.1 percent.—wsj.com U.S. at Above-Target Inflation The U.S. annual inflation rate was 3.7 percent in July 2026. In fact, inflation has remained above the Federal Reserve’s 2 percent target for five and a … Continue reading U.S. Adds a Whopping 162,000 Jobs in a Bright Spot for the Economy
Category: MAT4
Macroeconomic Trends (Growth and Inflation)
Keywords: Per capita real GDP growth rate, Rule of 70, Potential GDP, Productivity, Interest rate, money, Quantity theory
Parkin 14e Chapters 6, 7, 8
Bade-Parkin 9e Chapters 8, 9, 10, 11, 12
Parkin-Bade Canada 11e Chapters 6, 7, 8
Parkin-Bade Australia 2e Chapters 8, 9, 10, 11, 12
Parkin-Powell-Matthews 11e Chapters 22, 23, 24
Higher-Than-Expected Inflation Lowers the Real Interest Rate
After cutting interest rates last year, the Fed expected inflation to remain just above its 2% target. Instead, inflation stayed between 3% and 4%, making the Fed’s 3.5%–3.75% policy rate close to zero or negative in real terms. It is the real interest rate that matters for spending decisions.—wsj.com
The Reserve Bank of New Zealand (RBNZ) Raises its Policy Rate
The RBNZ raised its Official Cash Rate (the rate commercial banks earn on deposits with, or pay on borrowing from, the central bank) from 2.0% to 2.5%. Although the rate still encourages borrowing, the neutral rate is uncertain. Further rate increases may be needed to bring inflation back to target.—wsj.com
U.S. Dollar Falls After BLS Data Release
The U.S. dollar fell after BLS data released on April 10 showed a rise in total CPI inflation—driven by higher oil prices—but stable core inflation, signaling that the Federal Reserve is unlikely to raise interest rates.—wsj.com
Women are Leaving the Workforce at Alarming Rates
Rising childcare costs and overwhelming work demands have forced many women, including executives, to leave their jobs to focus on family and self-care—a trend that risks stifling U.S. economic growth. An estimated 455,000 women left the workforce between January and August this year.—cnn.com
Economic Growth in the UK
UK’s economic growth rate is expected to remain modest at 1.3% in 2025. On a per head basis the economic output is only set to grow 0.4% this year.—bbc.com
Big Tech Firms Turn to Borrowing
Despite high interest rates, big tech firms have turned to borrowing to build a greater number of AI data centers which are believed to be highly rewarding in the future.—economist.com
US Productivity Rises at Fastest Rate in Three Years
Nonfarm labor productivity increased at a 4.7% annualized rate last quarter, the fastest since the third quarter of 2020, the Labor Department said.—reuters.com
For Gen Z, Mobile Wallets Are In
For Gen Z, Bank Accounts and Cash Are Out, Mobile Wallets Are In The use of bank accounts and cash is waning among younger customers. Gen Zs are embracing new tools like mobile wallets that store information from credit cards, debit cards, coupons, and loyalty cards.—computerworld.com Venmo Expanding While typically used to pay or request … Continue reading For Gen Z, Mobile Wallets Are In
Ikea To Invest More Than $3B In Stores
Ikea is investing about $3.2 billion in its physical locations to make them more adaptable to online orders. The company also announced that new stores in Stockholm and Toronto will open soon.—constructiondive.com Some Data In the first quarter of 2022, U.S. business investment increased from $2,906 billion to $2,969 billion.