Weekly Digest – July 31 2024
Welcome to our Weekly Digest – stay in the know with recent news updates relevant to business and the economy.
In more than 200 U.S. cities, $1 million only gets you a starter home
A typical entry-level home in the U.S. costs roughly $200,000. But in a growing number of cities, that would only cover the down payment. With housing in short supply around the country and the stiffest mortgage rates in years, you need at least $1 million to buy a starter home in 237 cities, according to a Zillow analysis.
US economy regains speed in second quarter; price pressures easing
The U.S. economy grew faster than expected in the second quarter amid solid gains in consumer spending and business investment, but inflation pressures subsided, leaving intact expectations of a September interest rate cut from the Federal Reserve.
Inflation is inching closer toward the Fed’s 2% target
Another favorable piece of economic data shows price hikes are slowing and that long-unruly inflation appears to be tamed. The Personal Consumption Expenditures price index — a closely watched inflation gauge that the Federal Reserve uses for its 2% target — slowed to 2.5% for the 12 months ended in June from 2.6% the month before, according to Commerce Department data released Friday.
U.S. economy shows strong 2.8 percent growth, driven by consumers and businesses
The nation’s economy accelerated last quarter at a strong 2.8 percent annual pace, with consumers and businesses helping drive growth despite the pressure of continually high interest rates. Thursday’s report from the Commerce Department said the gross domestic product — the economy’s total output of goods and services — picked up in the April-June quarter after growing at a 1.4 percent pace in the January-March period.
Fed is about to nod at a rate cut as job growth moderates
Federal Reserve officials are on the verge of lowering borrowing costs within months, a move Chair Jerome Powell may signal in the coming week as the risks grow of imperiling a solid but moderating job market.
U.S. E-commerce vendors to embrace international markets
Global expansion is in the cards for a majority of e-commerce retailers, according to a survey by DHL Express US of its online vendors released on June 27. In that survey, more than 53% of 1,000-plus DHL Express small and medium-sized enterprise customers based in the U.S. said that they see international growth as the biggest opportunity for e-commerce business.
Fed’s preferred inflation gauge cools, adding to likelihood of a September rate cut
The Federal Reserve’s favored inflation measure remained low last month, bolstering evidence that price pressures are steadily cooling and setting the stage for the Fed to begin cutting interest rates in September.
Key Dates coming up
12th August – Employees who work for tips. If you received $20 or more in tips during July, report them to your employer. You can use Form 4070.
For a comprehensive view of all the important tax deadlines applicable to each taxpayer, please visit IRS Publication 509.
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