latest news in economy

Atlanta Fed President Warns Central Bank Credibility Is at Risk as Inflation Persists

Atlanta Fed President Warns Central Bank Credibility Is at Risk as Inflation Persists

Atlanta, Wednesday, 17 December 2025.
In his final quarterly message issued December 16, 2025, Atlanta Fed President Raphael Bostic cautions that the Federal Reserve’s credibility on inflation is perilously close to being compromised. Despite the FOMC’s recent decision to cut rates by 25 basis points, Bostic identifies price stability as the single most pressing economic risk, noting that the underlying price level has surged nearly 20 percent over the past five years. While acknowledging the rising distress in the labor market—evidenced by unemployment hitting a four-year high of 4.6 percent—Bostic argues that aggressive easing now could disastrously untether inflation expectations. This analysis underscores the severe “quandary” policymakers face heading into 2026: choosing between immediate relief for a softening job market or maintaining restrictive policies to prevent long-term inflationary damage.

Unemployment Reaches Four-Year High as Delayed Data Reveals Sharp October Job Losses

Unemployment Reaches Four-Year High as Delayed Data Reveals Sharp October Job Losses

Washington, Tuesday, 16 December 2025.
Delayed Labor Department figures confirm a cooling economy with unemployment hitting 4.6 percent. Most intriguingly, revised data reveals a net loss of 105,000 jobs in October, driven by significant federal departures.

Crypto Stocks Plunge as Bitcoin Enters Deep Bear Market Territory

Crypto Stocks Plunge as Bitcoin Enters Deep Bear Market Territory

New York, Tuesday, 16 December 2025.
Bitcoin’s 30% drop from its October high of $126,000 has triggered a sharp sell-off in linked equities like MARA and IREN. With prices sliding below $86,000, this high correlation signals a harsh end to 2025.

Recessions Double the Long-Term Cost of Losing a Job

Recessions Double the Long-Term Cost of Losing a Job

Washington D.C., Tuesday, 16 December 2025.
Brookings data reveals that workers displaced during high unemployment lose a staggering 2.8 years of earnings—doubling the financial penalty faced during stable economic periods.

Major Chains Streamline Menus to Counter Inflation and Tariffs

Major Chains Streamline Menus to Counter Inflation and Tariffs

New York, Tuesday, 16 December 2025.
Facing a 33% surge in dining costs since 2020, chains are treating kitchens like factories; Applebee’s slashed its menu to 105 items to offset tariffs and sustain volume.

Nonbank Financial Sector Grows Twice as Fast as Traditional Banks in 2024

Nonbank Financial Sector Grows Twice as Fast as Traditional Banks in 2024

Basel, Tuesday, 16 December 2025.
Global nonbank assets surged to $256.8 trillion in 2024, expanding twice as fast as traditional banks and now controlling over half of the world’s financial system.

Ten Communities Selected to Drive Regional Growth Through Immigrant Inclusion Strategies

Ten Communities Selected to Drive Regional Growth Through Immigrant Inclusion Strategies

Washington D.C., Tuesday, 16 December 2025.
The American Immigration Council’s 2026 Gateways for Growth Challenge equips ten communities with customized economic research to leverage immigrant talent, vital for combating regional labor shortages and sustaining local growth.

Fed Governor Claims “Phantom Inflation” Is Misleading Interest Rate Decisions

Fed Governor Claims “Phantom Inflation” Is Misleading Interest Rate Decisions

Washington, Tuesday, 16 December 2025.
Federal Reserve Governor Miran warns that “phantom inflation” from lagging housing data hides the reality that true prices are near target at 2.3%, risking unnecessary job losses.

Nikkei 225 Breaches 49,700 Level as Tech Selloff and Rate Hike Fears Grip Tokyo

Nikkei 225 Breaches 49,700 Level as Tech Selloff and Rate Hike Fears Grip Tokyo

Tokyo, Tuesday, 16 December 2025.
On Tuesday, December 16, 2025, Japan’s Nikkei 225 Index fell 1.35% to close at 49,489, breaching the critical 49,700 threshold amid a global tech selloff. The decline was heavily influenced by a sharp correction in AI-related stocks, with Advantest Corp plunging 6.42% and Kioxia Holdings dropping 3.1%, mirroring similar trends on Wall Street. Beyond the tech sector, market sentiment is being tested by the widely anticipated Bank of Japan interest rate hike expected later this week. This dual pressure of external market correlation and domestic monetary tightening highlights a pivotal moment for asset managers navigating Asian market volatility.

Evercore Strategist Predicts Continued Market Gains Due to Missing Recession Signals

Evercore Strategist Predicts Continued Market Gains Due to Missing Recession Signals

New York, Tuesday, 16 December 2025.
Evercore ISI projects an 8.5% S&P 500 rise through 2026, arguing that despite high valuations, the systemic forces that typically trigger bear markets are currently absent from the financial landscape.