Category: Economy and Trading

Economy and Trading

Fed Rate Cuts Amid Persistent Inflation: Why Prices Remain High Despite Claims of Victory

Despite Federal Reserve interest rate cuts and claims that inflation is defeated, consumer prices remain stubbornly high. Tariffs, supply chain pressures, and wage dynamics continue fueling economic uncertainty for households and policymakers.

Federal Reserve officials and the Trump administration have recently touted significant progress in combating inflation, with President Donald Trump declaring to the United Nations that “inflation has been defeated” and grocery and mortgage costs are declining. However, economic data reveals a more complex reality: inflation has increased in three of the past four months, remaining above the Fed’s 2% target and continuing to strain American households. This discrepancy between political rhetoric and economic conditions raises critical questions about the sustainability of recent policy moves, including Fed rate cuts and escalating tariffs.

Current Inflation Landscape and Political Narratives

by Erica Lang
Arts and EntertainmentEconomy and Trading

Jamie Dimon on AI Reality, Job Disruption, and Stock Bubble Concerns | Fortune Analysis

JPMorgan Chase CEO Jamie Dimon delivers stark warnings about AI-driven job disruption while affirming technology’s genuine potential. The banking leader sees stocks in “bubble territory” but urges pragmatic AI adoption across industries.

In a candid discussion at the Fortune Most Powerful Women conference, JPMorgan Chase CEO Jamie Dimon delivered characteristically direct insights about artificial intelligence‘s transformative impact, job market disruption, and current market valuations. The veteran banker balanced enthusiasm for AI’s genuine potential with sober warnings about societal preparation and investment caution, drawing from his institution’s extensive experience deploying AI systems since 2012.

The AI Reality Versus Bubble Perception

by Jessica Moore P.E.
Economy and TradingPersonal Finance

First Brands and Tricolor Bankruptcies Signal Potential Credit Stress as Jamie Dimon Warns of “More Cockroaches”

The collapse of auto sector companies First Brands and Tricolor has triggered Wall Street concerns about potential credit stress. JPMorgan CEO Jamie Dimon warns these bankruptcies may indicate broader issues in credit markets after years of bullish conditions. Major banks are reassessing exposures while maintaining overall credit quality remains robust.

Bankruptcies Rock Auto Sector and Credit Markets

The recent bankruptcy filings of U.S. auto parts supplier First Brands and car dealership Tricolor have sent shockwaves through Wall Street, prompting serious reassessment of credit risk management practices across major financial institutions. These twin collapses in September have exposed vulnerabilities in certain segments of the multitrillion-dollar corporate credit market, particularly affecting auto lending and consumer finance sectors. The situation has forced debt investors to reconsider their exposure strategies amid growing concerns about potential ripple effects throughout the financial system.

by Jessica Moore P.E.
BusinessEconomy and Trading

Wall Street Mixed Session: Bank Rally, Trade Tensions, and Economic Signals

Wall Street experienced a divided trading session with bank stocks surging on upbeat quarterly results while broader indexes reflected ongoing trade war concerns. Federal Reserve Chair Jerome Powell’s economic assessment provided additional context for investors navigating volatile market conditions.

Wall Street delivered a mixed performance on Tuesday as investors weighed strong banking sector earnings against persistent U.S.-China trade tensions and Federal Reserve commentary. The S&P 500 posted modest gains while the Nasdaq declined, reflecting the complex interplay of corporate results and macroeconomic factors influencing Wall Street sentiment.

Banking Sector Leads Market Rally

by Jessica Moore P.E.
BusinessEconomy and Trading

Manufacturing Technology Orders Surge 36% in August 2025 Despite Economic Headwinds

New orders for manufacturing technology reached $529.4 million in August 2025, marking a 36.2% monthly increase and demonstrating remarkable sector resilience. Despite headwinds including federal shutdowns and tariff uncertainties, year-to-date orders totaled $3.44 billion, an 18.3% increase over 2024 levels.

The U.S. manufacturing technology sector demonstrated remarkable resilience in August 2025 as new orders surged to $529.4 million, representing a substantial 36.2% increase from July 2025 and nearly 45% growth compared to August 2024. According to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology, this performance underscores the sector’s strength despite mounting economic uncertainties and numerous headwinds affecting industrial investment decisions.

Historic Performance Context

by Michael Turner
Economy and TradingPolicy

Alternative Economic Indicators: 11 Unconventional Metrics to Track During Government Shutdowns

** As government shutdowns halt official economic data, investors and policymakers are turning to alternative indicators ranging from private payroll reports to men’s underwear sales. These unconventional metrics offer unique insights when traditional compass points disappear.

The Data Void: Why Alternative Economic Indicators Matter During Shutdowns

When the Bureau of Labor Statistics halts its regular reports during government shutdowns, investors and policymakers face a significant challenge. The current government shutdown has entered its 14th day with predictions suggesting it could last 30 days or more, creating a critical data vacuum at a time when the economy is transitioning from tight monetary policy. Without official statistics on employment, inflation, and growth, market participants must rely on alternative measures to gauge economic health.

by Michael Turner