Summary:
1- Harris will focus on child tax credit costs.
2- Fed member says he’s increasingly concerned about hiring.
3- Core inflation in the United States has fallen for the fourth straight month.
4- Harris leads Trump in five states, according to polls.
Harris will focus on child tax credit costs
Advisers to Democratic presidential nominee Kamala Harris have indicated that her economic agenda will prioritize lowering the costs of groceries, housing, and health care, enhancing the child tax credit, and contrasting with Republican Donald Trump on tariffs and taxes. Harris intends to outline parts of her economic plan in a speech in North Carolina on Friday, which will address cost reductions and highlight the significance of consumer prices to voters. Harris’s economic platform closely aligns with President Joe Biden’s and seeks to resonate with the middle class. “It’s the same values, but it’s a different vision,” said one aide, explaining how Harris’ economic agenda will diverge from Biden’s. “She doesn’t stray too far from him in substance, and she’ll emphasize the issues that matter most to her.”
Federal Reserve member expresses growing concern about employment
Chicago Fed President Austin Goolsbee stated that he is increasingly worried about the labor market rather than inflation, given recent advancements in tackling price pressures, particularly disappointing jobs data. He remarked that current interest rates are "very restrictive," a position that would only be suitable if the economy were overheating. He refrained from commenting on the likelihood of a rate cut at the Fed's next meeting. When asked about the balance between inflation and risks in the labor market, he indicated that he is becoming more apprehensive about the employment situation. He pointed out that the recent uptick in the unemployment rate may reflect more individuals entering the labor market, but it could also suggest that we are heading toward a more challenging situation in the near term, moving away from a stable level.
Core U.S. Inflation Declines for Fourth Consecutive Month
The U.S. Bureau of Labor Statistics reported Wednesday that the consumer price index (CPI) increased by 2.9% compared to a year ago and rose 0.2% from the previous month. The core CPI climbed 3.2% on a yearly basis and also increased 0.2% on a monthly basis. While the core CPI rebounded as anticipated, its trend aligned with slowing inflation and did not alter expectations for a rate cut by the Federal Reserve next month. Inflation continues to trend downward as the economy gradually weakens, and combined with a sluggish labor market, we expect the Fed to start cutting rates next month.
Harris leads Trump in five states, according to new polls.
Kamala Harris is ahead of Donald Trump in five of the seven swing states in the United States, compared to Trump’s lead in six states and a tie in one state in May when Biden had not withdrawn. This report indicates Harris leading Trump by two points overall in those seven states, along with a two-point lead in Michigan, four points in Arizona, and five points in Pennsylvania and Wisconsin. In Nevada, Trump leads Harris by five points, and they are also tied in Georgia.
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