Economy

 

Federal Reserve member Michelle Bowman. Patrick Semansky / AP  

The Fed vs Inflation  

Fed top: Expect more hikes to be needed  

 

Federal Reserve member Michelle Bowman is almost convinced that the central bank needs to do more to bring down inflation, writes Reuters.  

 

Bowman supported last month's decision, a 25 basis point hike to the 5.25-5.50 range, but doesn't think it's enough. This is, among other things, because unemployment remains at low levels - and a recovery in the housing market.  

 

- I expect that more interest rate increases will be needed to bring inflation down to a path that leads towards the 2 percent target, she says during Saturday. 

 

The fact that she uses the word "increases" in the plural is interpreted as meaning that she means higher than 25 points, writes Reuters.

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Longest rising streak in over a year for oil  

The oil price was noted for a sixth week in a row of rising prices. It is the longest rising streak in over a year, notes Barron's.  

The increases come after Saudi Arabia decided to continue to hold back on production this autumn, combined with signs that demand is now starting to outstrip supply.  

"Once again, Saudi Arabia wants to keep the skeptics on their toes," RBC Capital Markets analyst Helima Croft wrote in a note this week. 

Brent crude rose 1.3 percent on Friday, giving a 1.9 percent boost for the week to $86 a barrel. Since the end of June, the price has risen by 18 percent. 

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US growth  

Credit card debt skyrockets in the US: Record levels 

Interest rates are rising, but that's not stopping Americans from using their credit cards. In July, credit card debt passed $1 trillion for the first time ever, according to data from the St. Louis Fed. That's what Yahoo Finance writes.  

The number of people falling behind on their payments is also increasing – especially among young Americans. At the same time, interest rates on credit cards are the highest in 40 years. At the beginning of August, the average interest rate was 20.5 percent.  

"Credit card holders are best off assuming interest rates will continue to rise and using that as motivation to continue reducing their credit card debt," Lending Tree credit analyst Matt Schulz told Yahoo. 

Biden on a bike ride in Rehoboth Beach, Delaware, earlier this week. Manuel Balce Ceneta / AP 

The election in the USA 2024 

Biden voters may switch tracks because of the economy  

US President Joe Biden is at risk of losing votes in the 2024 election because many voters are disappointed with the way the economy has developed. This is written by the Reuters news agency with reference to an opinion poll conducted together with Ipsos. 

6 percent of those who voted for him in 2020 want to vote for Donald Trump in 2024, according to the survey. 19 percent either answer that they are unsure or that they intend to vote for someone other than Biden or Trump.  

According to the survey, 42 percent of former Biden voters also believe that the economy has deteriorated since 2020. 33 percent respond that it has improved and 24 percent think that it is largely unchanged.