Economy
Understand the American economy through the data and institutions that shape it — inflation, jobs, economic growth, interest rates, the Federal Reserve, consumers, and the releases those judgements are built on.
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Economy
Why the Fed Targets PCE Inflation, Not CPI, to Set Interest Rates
The Federal Reserve targets PCE inflation instead of CPI. PCE adjusts for consumer behavior and weights healthcare spending more broadly. Here's how it works.
Economy
US trade deficit widens to $105.6 billion, highest since before tariffs
A surge in capital goods imports for AI infrastructure and higher oil purchases pushed the August deficit to its steepest level in 17 months.
Economy
How the BLS Turns 80,000 Monthly Prices Into the CPI
The CPI tracks 80,000 prices monthly from retail stores and service providers. Learn how the BLS weights, aggregates and publishes the inflation measure that shapes Fed policy and markets.
Economy
Michigan Sentiment Sinks to 48.1 as Oil Shock Clouds Q4 Spending
Two major surveys show households pulling back as gasoline prices surge and inflation expectations rise, signaling softer consumer spending ahead.
Economy
September Jobs Report Testing the Fed
A weaker print would ease pressure on the Federal Reserve to raise rates, while stronger gains could reinforce rate-hike arguments.
Economy
Core PCE hit 3.49% in September 2026 while core CPI showed 2.39%
The Fed's preferred inflation gauge updates faster, covers more spending, and responds quicker to how consumers actually behave. Here's what that means for reading economic news.
Economy
Consumer Sentiment Index Falls to 47.8 as Tariff Prices Hit Before Holidays
Two major sentiment surveys showed sharp declines in recent months amid tariff pass-through to prices. The question now is whether consumers pull back on holiday spending or continue regardless.
Economy
Consumer spending slowdown: what cools the economy's biggest engine
Consumer purchases account for roughly two-thirds of U.S. economic activity. Job losses, rising costs and higher credit card rates are testing that foundation.
Economy
Output per hour surges in manufacturing while labor's share of gains shrinks
Productivity rose 1.4% in Q2 2026, but manufacturing surged 2.4% — while the fraction of economic output going to workers fell to its lowest recorded level.
Economy
What core inflation at 2.4% signals about the Fed's policy challenge
Core inflation nears the Fed's target, but headline prices remain elevated, forcing the central bank to balance inflation control with employment concerns.
Economy
How to interpret quarterly GDP reports and what growth rates mean for jobs and wages
Different quarterly GDP growth rates signal different things about hiring, wage pressure and Fed policy. Here's what business readers need to know when reports arrive.
Economy
How GDP is calculated, and which parts drive growth or contraction
GDP sums consumer spending, business investment, government outlays and net exports. Q2 2026 growth slowed to 1.5% as government spending fell.
Economy
Why labor force participation matters more than the unemployment rate
The US labor force participation rate hit its lowest level since 1976 in August 2026.
Economy
How the Jobs Report Is Built, and Why Its First Number Moves
The monthly payroll count leans on a survey of about 119,000 employers, a model for new businesses, and late replies that keep changing the total for months.
Economy
How Small-Business Optimism Cooled in August, and What It Signals
NFIB's monthly survey found small-business optimism, sales and hiring plans all easing in August 2026, even as inflation concerns persisted.
Economy
How Businesses Are Getting Back Billions in Tariffs the Supreme Court Struck Down
The Supreme Court voided Trump's emergency tariffs in February. Seven months on, refunds are flowing, replacement tariffs are in place, and small businesses say they're still waiting.
