Economic News – During the past year there have been several major news stories regarding the economy. These include the slowing of hiring in Bank of America, inflation slowing more than expected and the rise in prices. The article focuses on the impact these articles have on the economic perceptions of the American public and on political attitudes.
Prices rose 7.1% annually in November
The Consumer Price Index (CPI) for All Urban Consumers increased 7.1% from a year ago in November. In the 12 months before, it had advanced 6.0%. This figure is well above the Federal Reserve’s 2% target.
A major source of consumer strain continues to be the high CPI. It remains above its average of 2.1% in three years before the pandemic. Despite the higher prices, households are still able to afford to buy some of the goods they need.
However, the CPI rose less than economists expected in November. Most of the increase came from food prices. Prices of cereals and bakery increased 16.4%. Meanwhile, fruits and vegetables increased a modest 0.5%. Other food groups, such as meat, fish, and eggs, declined.
Inflation slowing more than many economists expected
The Consumer Price Index (CPI) increased 0.1 percent in November. That marks the fifth consecutive month of declines. This is the first sign that inflation may be cooling down, although some economists still expect the rate to be higher than this.
Core CPI rose 0.3%, marking a slower pace of growth than in September. Its increase was led by soaring mortgage rates.
Overall prices are rising in several stubborn sectors, including food and rents. However, there are signs that supply chain problems have been resolved. In addition, the labor market is strong, with a record-low unemployment rate of 4.3 percent.
With a tight labor market, some economists expect inflation to slow down faster than most expect. While the Fed has a 2% target for its federal funds rate, some experts are concerned that the Fed has “some ways to go” in taming inflation.
Bank of America slowing hiring
The job-cutting frenzy on Wall Street appears to be waning. This may be a reflection of the growing competition for talent or a shift in focus to new technologies. But the big banks have their work cut out for them.
One of the most important questions on the minds of many top bankers is how to make the most of the headcount they have at their disposal. Bank of America is taking a different approach to workforce management in recent years. In addition to hiring more, it is also focusing on employee benefits.
The bank has made its best efforts to boost the salary of its staff. It has also increased the minimum wage it pays its employees.
Presidential comments influence the amount of coverage given to economic statistics
The most comprehensive survey of media consumption habits of Americans found that the average American gets their news from a small but select set of media outlets. Of those, 27 percent of those surveyed get their political news from right leaning sources. Not surprisingly, this group is less likely to be awed by the most recent news. As a result, they may be more prone to picking up the slack from the left leaning neoliberals. Hence, a study that examined the top media companies by demographic and by region was a perfect fit. Using this data set, we were able to uncover some intriguing findings.
Impact of economic news coverage on economic perceptions and political attitudes of citizens
Economic news coverage is an important source of citizens’ economic evaluations. These evaluations are used to influence political trust in different institutions. Citizens also have a subjective perception of the economy and this may diverge from actual developments. This discrepancy between objective indicators and perceptions can raise questions about citizens’ economic expectations and economic learning.
Previous research has found that economic news coverage has positive and negative effects on economic confidence and political trust. However, no study has yet tested these effects in a dynamic setting.
In this paper, we investigate the impact of economic news coverage on citizens’ economic perceptions and political attitudes. Using data from surveys conducted in the years 2012 and 2014, we test two hypotheses. First, we predict that the volume and tone of economic news coverage have a negative effect on economic confidence. Then, we hypothesize that the volume and tone of economic news coverage increase the chance of receiving economic news, increasing the likelihood of experiencing negative news.
New approach to measuring the state of the economy via the textual analysis of business news
For those who are looking for an alternative to GDP for measuring the state of the economy, news articles are a great place to start. This is because information derived from these articles is more likely to be a lagging indicator of the economy. That said, there are a number of techniques for extracting relevant data from newspaper articles. The most obvious is to count the number of positive and negative words in an article.
For those who are hesitant about the nitty gritty, the Survey of Current Business will publish a new website in the near future. The site will feature statistical tables and individual articles. In addition to being a trove of economic data, the site will also serve as a showcase for the work of leading economists.
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