Federal Reserve officials forecast higher interest rates through 2026 this week, a sign that borrowing costs are not heading back to the rock-bottom levels normal before the pandemic. The era of ultralow interest rates may be over. At the very least, policymakers don’t expect the type of low borrowing costs that prevailed before the pandemic ...

Economists had been wary of strong economic data, worried that it meant inflation might stay high. Now they are starting to embrace it. Good news is bad news: It had been the mantra in economic circles ever since inflation took off in early 2021. A strong job market and rapid consumer spending risked fueling further price increases and evoking ...

A key inflation gauge moderated and wage growth has cooled, even as consumers have continued to spend resiliently. Falling inflation. Moderating wage growth. Resilient consumer spending. This is what a soft landing would look like. It is too soon to say whether the Federal Reserve will succeed in its effort to bring inflation under control ...

Inflation is down from its peak last summer, but recent readings have shown substantial and surprising staying power. There was a moment, late last year, when everything seemed to be going according to the Federal Reserve's plan: Inflation was slowing, consumers were pulling back and the overheated economy was gently cooling down. But a spate ...

Fresh data offered more detail on how shoppers retrenched at the end of 2022. Consumer spending dropped in December for the second month in a row, as consumers retrenched after a bumpy year colored by a strong job market but also rapid inflation that eroded savings and posed a financial challenge for many Americans. Personal spending fell by ...

The Federal Reserve’s preferred inflation measure showed that price gains remained fast in September, and a gauge of wages it watches closely is climbing quickly. Economic data on Friday brought troubling news for Federal Reserve officials who are trying to rein in the fastest inflation in decades: Prices are still rising quickly. Wages are ...

Inflation stayed far above the Federal Reserve’s goal in August, as prices climbed more quickly than economists expected. The Federal Reserve's preferred inflation gauge remained elevated in August, data released on Friday showed, further evidence that the central bank is contending with a stubborn problem as it tries to choke off the ...

Gross domestic income, adjusted for inflation, grew more modestly than first estimated. Unlike gross domestic product, though, it remained positive. A key measure of U.S. economic output grew more slowly in the first half of the year than previously believed, government data released Thursday showed. Gross domestic income, adjusted for ...

Americans with low incomes are pulling back from buying even as their richer counterparts keep spending — with potentially big consequences. For Theresa Clarke, a retiree in New Canaan, Conn., the rising cost of living means not buying Goldfish crackers for her disabled daughter because a carton costs $11.99 at her local Stop & Shop. It ...

Inflation is expected to remain high later this year even as the economy slows and layoffs rise. Already, signs of financial stress are surfacing. Kat Johnston didn't expect the pandemic to make her less stressed about her finances. After all, she temporarily lost her job at the library where she worked full time. But, like many Americans, ...

The Federal Reserve's preferred measure of inflation climbed by 4 percent in June compared with a year earlier, as a rebounding economy and strong demand for goods and services helped to push prices higher. The gains in the Personal Consumption Expenditures inflation index were the fastest since 2008, but in line with economists' ...

Prices climbed for years before the runaway inflation of the 1970s. Economists see parallels today, but the differences are just as important. The last time big government spending, supply chain shocks and rising wages threatened to keep inflation meaningfully higher, President Biden's top economic adviser was in diapers. Jump forward half ...

PHILADELPHIA — After a decade of stagnation, black and African-American workers have seen pay increase. One man’s story shows the hope — and limitations — with that shift. On a brisk January morning Markus Mitchell arrives at his desk at 8:30, his phone ringing before he can even log in to his computer. An employee at the giant nonprofit where ...