El-Erian warns of ‘cost-of-living crisis,’ says Fed rate hikes could cause recession
The Federal Reserve's efforts to fight inflation threaten to sink the U.S. into contraction, according to economist Mohamed El-Erian.
The Federal Reserve's efforts to fight inflation threaten to sink the U.S. into contraction, according to economist Mohamed El-Erian.
Home prices picked up steam again in January after a brief pullback, even as mortgage rates increased.
Post-Covid rebounds in the leisure and hospitality and business sectors continued last month and helped drive a strong March jobs report.
Nonfarm payrolls were expected to rise by 490,000 in March, according to Dow Jones estimates.
The personal consumption expenditures price index increased 5.4% from the same period in 2021, the biggest jump going back to April 1983.
Private payrolls expanded by 455,000 for the month, the firm said, about in line with the Dow Jones estimate of 450,000.
The average rate on the 30-year fixed mortgage shot significantly higher Friday, rising 24 basis points to 4.95%, according to Mortgage News Daily.
Higher mortgage rates are taking their toll on home sales, as a strong housing market begins to turn.
A new Cold War will pose a new challenge to a market that is still recovering from the uncertainties of the pandemic.