Economy

Fed Survey: Median Family Income and Net Worth Up in 2025, Debt Payments and Delinquencies Rise

The Fed’s 2025 survey shows modest gains in median income and net worth, while household debt payments and delinquencies rose sharply.

#householdfinance, #consumer, #personaldebt, #federalreserve, #income

CBO: $1 Billion in Flood Adaptation Could Cut $3–4 Billion in Future Damage Over 30 Years

CBO finds $1B in federal flood adaptation could cut $3–4B in future flood damage over 30 years, but official budget scores typically won't count those savings.

#flood, #climate, #cbo, #infrastructure

Lagarde Warns AI Is a Financial‑Stability Risk, Urges Focus on Trading, Cyber and Europe’s Provider Dependence

Christine Lagarde warns AI can pose systemic financial risks, urging attention to trading correlation, cyber resilience and Europe’s dependence on a few providers.

#ai, #financialstability, #christinelagarde, #europe, #cybersecurity

BEA Revises U.S. Q2 GDP Up to 2.2% as Inflation Remains Elevated

BEA's third estimate lifts U.S. Q2 GDP to a 2.2% annualized rate; PCE inflation rose 5%. State growth ranged from 4% in New York to −2.3% in West Virginia.

#economy, #gdp, #inflation, #bea

Reserve Bank of Australia Raises Cash Rate to 4.60%, Flags Inflation Risks

RBA raised the cash rate 25bps to 4.60%, citing persistent inflation, global energy and AI-driven price pressures and leaving open the possibility of further hikes.

#rba, #interestrates, #australia, #inflation

U.S. Manufacturing Hits 52-Month High in S&P Global Flash PMI, Raising Inflation Concerns

S&P Global’s flash PMI shows U.S. manufacturing surged to a 52-month high in September, boosting growth outlook while heightening inflation and rate risks.

#manufacturing, #economy, #inflation, #pmi

BOJ minutes show shift from lifting to 'anchoring' 2% inflation, stoking debate over further rate hikes

July BOJ minutes show policymakers shifting focus from lifting inflation to anchoring it at 2%, prompting debate on timing and pace of further rate increases.

#boj, #inflation, #monetarypolicy, #japan

GAO: Tax Fraud Likely Costs U.S. $116–$304 Billion a Year; IRS Lacks Agencywide Antifraud Strategy

GAO estimates federal tax fraud costs $116–$304 billion a year and says the IRS lacks an agencywide antifraud strategy and a designated coordinating office.

#tax, #irs, #gaoreport, #fraud

Isabel Schnabel to leave ECB for senior IMF policy role in January

ECB Executive Board member Isabel Schnabel will resign Jan. 3, 2027 to become IMF financial counsellor and head of its Monetary and Capital Markets Department.

#ecb, #imf, #isabelschnabel, #centralbank

CBO: Income Inequality Narrowed in 2023 as Lower-Income Households Gained and Top 1% Fell

CBO: Income inequality narrowed in 2023 — incomes rose for the lowest quintile and fell for the top 1% (lower capital gains). But inequality rose since 1979.

#inequality, #income, #cbo, #taxes

Fed Raises Policy Rate to 3.75%–4.00% in First Hike Under Chair Kevin Warsh

On Sept. 16 the Fed raised its policy rate to 3.75%–4.00% — the first hike under Chair Kevin Warsh — and projected rates to stay elevated.

#fed, #interestrates, #inflation, #kevinwarsh

CBO: U.S. Combat Operations Against Iran Cost About $38.1 Billion Through Aug. 1

CBO estimates U.S. combat operations against Iran cost about $38.1B through Aug. 1, driven by munitions and flight hours; monthly costs may rise $2–3B.

#defense, #cbo, #iran, #budget, #pentagon

ECB Raises Key Rates by 25 Basis Points, Warns Inflation Will Stay Above Target for Years

ECB raised its three key rates by 25 basis points, projecting inflation above 2% through 2028 while euro-area growth remains weak.

#eurozone, #ecb, #interestrates, #inflation

CBO: Automatic Stabilizers Will Barely Curb U.S. Deficits Over Next Decade

CBO finds automatic stabilizers will barely reduce deficits from 2026–2036, leaving structurally large federal deficits averaging 6.1% of potential GDP.

#cbo, #deficits, #fiscalpolicy, #economy

U.S. PCE Inflation Remains at 3.7% in July; Real Consumer Spending Barely Rose

July PCE inflation stayed at 3.7% (core 3.3%), well above the Fed's 2% goal, while real consumer spending was essentially flat.

#inflation, #pce, #federalreserve, #consumer-spending