The flurry of major and surprising economic news in the past week has changed the outlook on inflation and the possibility of recession.
Ford School professor Betsey Stevenson was one of 126 top economists who wrote a letter to congressional leadership boosting the Inflation Reduction Act, stating, “This historic legislation makes crucial investments in energy, health care, and in shoring up the nation's tax system. These investments will fight inflation and lower costs for American families while setting the stage for strong, stable, and broadly-shared long-term economic growth.” The bill passed the Senate on a 50-50 party-line vote with Vice President Kamala Harris casting the tie-breaker.
The astonishing July jobs report showed an expectation-shattering 528,000 jobs added, which brought employment back to pre-pandemic levels. Among the many analyses, Ford School professor Justin Wolfers said, “It puts to an end any notion that the economy is currently in a recession. It’s unabashedly, directly, in every way you look at it, news suggesting the economy is growing robustly, that people are getting jobs. The labor market not only is healing, but has fully healed.”
Here is a full list of the articles featuring their analyses:
Stevenson:
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Four experts react to July's reported decline in wholesale prices, CNBC, August 11, 2022
- Waiting for another inflation report, with concern, Marketplace, August 9, 2022
- American workers are becoming less productive. Blame the pandemic., Marketplace, August 8, 2022
- Employers added 528,000 jobs in July, shattering expectations, Washington Post, August 5, 2022
- Balance of Power Full Show (08/05/2022), Bloomberg, August 5, 2022
- Top economists say Democrats' health care and climate package will put 'downward pressure on inflation', CNN, August 2, 2022
- 126 Top Economists: Inflation Reduction Act “Will Fight Inflation and Lower Costs”, Office of the Speaker of the House, August 2, 2022
Wolfers:
- GBP/USD Technical Analysis: Selling Strategy Still Standing, Daily Forex, August 11, 2022
- U.S. Adds 528K Jobs In July, Unemployment Falls To 3.5 Percent, CNN, August 6, 2022
- July jobs report, MSNBC, August 5, 2022
- With Surge in July, U.S. Recovers the Jobs Lost in the Pandemic, The New York Times, August 5, 2022
- U.S. Job Growth Unexpectedly Soared in July, The New York Times, August 5, 2022
- POLITICO Playbook PM: The jobs report shocker, Politico, August 5, 2022
- Biden Takes Victory Lap as Stellar Jobs Report Cools Recession Talk, Time, August 5, 2022
- Is the Economy Getting Better?, In the Bubble, August 3, 2022
