Tag Archives: federal reserve

US December Unemployment at Record Low of 3.5%

Nevertheless, the Federal Reserve seems determined to send the US economy into a deep recession. The Fed has done this in the past with reckless interest rate increases from an ideology that thinks it is good when people lose jobs to keep demand and inflation down. However, consider that during December, average hourly earnings for all employees on private non-farm payrolls rose by 9 cents, or a mere 0.3%, to $32.82. During the past 12 months, average hourly earnings have increased by 4.6%. In December, average hourly earnings of private-sector production and non-supervisory employees rose by 6 cents, or 0.2%, to $28.07. AutoInformed doesn’t consider the latest data as cause for inflationary worries, let alone more interest rate increases. (Autoinformed.com: Federal Reserve Chair Powell Says Inflation Remains Too High) Continue reading

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Federal Reserve Chair Powell Says Inflation Remains Too High

The remarks today are important to the US auto industry since it is responsible for a total of 10.3 million American jobs, or about 8% of private-sector employment as well as $650 billion in direct, indirect, and induced paychecks, according to the Alliance for Automotive Innovation*. More than $272 billion annually is contributed in the form of federal, state, and local tax revenues. This includes more than $70 billion in income taxes and $10 billion in corporate profit taxes.

Auto companies in our view need to demonstrate a degree of flexibility and speed of analysis and reaction that – much like the Covid Pandemic and Putin’s war against Ukraine – were not part of the usual operating procedures. Continue reading

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Federal Reserve President on Do Nothing Republicans – The Economy Goes Where The Virus Goes

“Fiscal support is really critical. When Congress came out with the CARES Act, we saw immediately how that cushioned households and small businesses and helped them get through the virus. The virus is still with us, so more is needed. … If we don’t get that, then this is a mini fiscal cliff, maybe even a major fiscal cliff… Continue reading

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Ally Squeals after Flunking New Fed Capital Stress Test

Taxpayers still own more than 70% of Ally, with the owner – the Fed – saying it does not have enough capital to endure a theoretical recession that would produce an unemployment rate of 13% percent, a 21% drop in housing prices and as economic slowdowns in Europe and Asia. This admittedly severe test – surpassing even the Bush Administration’s dismal record of economic stewardship – may or may not be anything more than an academic exercise.

In what I take to be a gratuitous insult to taxpayers, Ally said, “Further, the Federal Reserve has not objected to the ongoing payments of preferred dividends and interest on the trust preferred securities and subordinated debt.”

Darn right we expect you to pay interest on the loans. Continue reading

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