FEATURED POST

September 25, 2023

MainStreet Macro: Chasing Growth

This week, in the absence of a video, I’d like to set a scene with words. Imagine you’re a hero, tracking a villain dead-set on mayhem. The fate of the economy hangs on your every move. Fraught with more tension than The Dark Knight, central banks around the world have been doing just that, turning their laser sights on interest rates as they try to chase down high inflation. Every decision carries high stakes, with the threat of a slowing economy menacing at every turn. It’s a fact that many economies don’t just fall into recession; they’re driven there by central banks that hike rates too aggressively.
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MainStreet Macro: Nela’s Recession Playbook

by Nela Richardson, Ph.D.

The biggest economic debate of 2023 is whether the U.S. is heading toward a recession. And the reason it’s being debated is because the data shows evidence for both sides. In the no-recession camp, the economy grew by 2.9 percent last quarter, besting analysts estimates, and inflation slowed for the second straight month in December. And while we’ve seen big headlines on corporate layoffs, these job losses aren’t yet reflected in the data. Jobless claims for the first three weeks of January were near record lows.
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MainStreet Macro: Shaking off the gloom in Davos

by Nela Richardson, Ph.D.

The annual World Economic Forum gathering in the mountainside retreat of Davos, Switzerland, is most commonly described with a single word: elite. After attending the meetings last week, I’d like to offer three more words that perhaps more constructively capture the ethos of Davos this year: Optimism, dealmaking, and hope.
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MainStreet Macro: Minimum wages are rising. But is it enough?

by Nela Richardson, Ph.D.

Last week, data for December showed that the rate of inflation had fallen to 6.5 percent from 7.1 percent a year earlier. The decline was driven mainly by a steep drop in gas prices. While overall inflation might (thankfully) be losing steam, workers, especially those with smaller paychecks, continue to suffer an erosion of the pay gains they reaped during 2022’s tight labor market.
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