Cheaper gas holds down US inflation, PCE shows, but the cost of everything else is still going up fast

The numbers: A key gauge of US inflation rose a mild 0.3% in August, as another sharp decline in gasoline prices helped to ease the financial stress on households and businesses. But prices are still going up at the fastest pace in 40 years. The small increase in the so-called personal-consumption price index last month … Read more

US stocks fizzle as a brutal month draws to a close

US stocks struggled for direction Friday, on the final day of what has been a brutal month and quarter for markets as investors grew more fearful that aggressive interest rate hikes by the Federal Reserve will drive the economy into a downturn in an attempt to quell inflation. what’s happening The Dow Jones Industrial Average … Read more

Want to gamble your savings on a quick collapse in inflation?

Inflation is running at 8% or higher, depending on how you count it (and who’s counting). The Federal Reserve is clearly panicking. And the markets are clearly panicking too. So at this point, Uncle Sam would like to offer you a bet. How would you like to wager your hard-earned retirement savings that inflation is … Read more

Weekend reads: How to manage your finances when inflation is high and interest rates keeping shooting up

Financial markets have reacted in shock to the Federal Reserve’s strengthened vow to continue tightening of monetary policy to fight high inflation. The S&P 500 has declined 10.5% over the past month and the average interest rate on a 30-year mortgage loan has increased to 6.29% from 6.02% in only one week, according to Freddie … Read more

In weird sit-down, Nobel Prize–winning economist Peter Diamond sees ‘significant power shift from employers to workers’ underway

Peter Diamond, winner of the Nobel Prize in economics in 2010, has shied away from the press for most of his long and illustrious career, explaining that he’s concerned about being misunderstood. Given the chance to interview him, MarketWatch jumped at it. His supporters think Diamond is probably the smartest of economists. His selection by … Read more

Can the Fed tame inflation without further crushing the stock market? What’s next for investors.

The Federal Reserve isn’t trying to slam the stock market as it rapidly raises interest rates in its bid to slow inflation still running red hot — but investors need to be prepared for more pain and volatility because policy makers aren’t going to be cowed by a deepening selloff, investors and strategists said. “I … Read more

Why a single US inflation report rolled global financial markets — and what comes next

It was the single report heard around the world, shaking the confidence of traders and investors across three continents. Stocks sold off across Asia and Europe on Wednesday, a day after August’s US consumer-price index report triggered the worst day for the Dow Jones Industrial Average DJIA, +0.10%, S&P 500 SPX, +0.34% and Nasdaq Composite … Read more

Markets are waking up to the notion that inflation hasn’t peaked

It only took a 0.1% advance in the rate of consumer-price inflation last month to send markets into their worst tailspin in two years. But what might seem like a relatively small uptick — coupled with the fact that the headline number actually declined on an annualized basis — belies a far more significant shift … Read more

Opinion: How can Apple hold the line on iPhone prices amid soaring inflation?

Inflation in the US is surging to near a 40-year high, with prices on food, fuel and pretty much everything seeming to rise more every month. Smartphones may be an exception. Apple AAPL, +0.44%, for example, recently announced its new versions of the iPhone and other gadgets, and turned a lot of heads when it … Read more