Real Time Economics

Number of the Week: Half of U.S. Lives in Household Getting Benefits

Phil Izzo — Sat, 26 May 2012 09:00:49 +0000

Cutting government spending is no easy task, and it's made more complicated by recent data showing that nearly half of the people in the U.S. live in a household that receives at least one government benefit.

Move Bankers off Regional Fed Board

Neal Lipschutz — Fri, 25 May 2012 19:55:39 +0000

If we simply banned local bankers from the regional Reserve bank boards, any complaints about the appearance created by bankers taking any role in the Fed system also would disappear.

Forecasters Flying Blind When Predicting Repercussions of Greek Exit

Kathleen Madigan — Fri, 25 May 2012 19:08:12 +0000

Economic computer models typically depend on the past to forecast the future. The possibility of Greece leaving the euro zone is an exception to the rule because no nation has exited before.

Demand Strong for Government Program Paying Farmers Not to Plant Crops

Bill Tomson — Fri, 25 May 2012 17:13:17 +0000

More farmers than expected applied to put their land in a government program that pays the farmers not to plant crops and not all of the acres could be accommodated, the USDA said.

More Economists React: What if Greece Exits Euro Zone?

WSJ Staff — Fri, 25 May 2012 15:26:34 +0000

While the world holds its breath for the next Greek elections or major policy announcement, speculation of an exit runs rife.

Consumer Sentiment at Highest Since Late 2007

Kathleen Madigan — Fri, 25 May 2012 14:09:50 +0000

U.S. consumers ended May feeling the most upbeat about the economy since late 2007, as respondents are paying attention to jobs, not Greece.

New Governor Powell Sworn In to Fed Board by Bernanke

Kristina Peterson — Fri, 25 May 2012 14:02:45 +0000

Jerome Powell was sworn in to the Fed's Board of Governors on Friday, the central bank said in a statement.

Fed’s Plosser: Need to Rethink Rule-Driven Policy as Economy Evolves

Cynthia Lin — Fri, 25 May 2012 13:33:37 +0000

In a post-crisis economy where monetary policymakers are forced to think and act outside the box, using traditional models to guide policy decisions poses many challenges, a top Fed official said.

Secondary Sources: Government Spending, Potential Growth, Structural Change

Phil Izzo — Fri, 25 May 2012 13:18:44 +0000

A roundup of economic news from around the Web.

Vital Signs: Falling German Bond Yields

Ben Casselman — Fri, 25 May 2012 12:48:51 +0000

The yield on 10-year German government bonds has dropped under 1.4%, down from over 3% a year ago.

IMF Helping EU Explore Alternatives to Euro Bonds

Ian Talley — Thu, 24 May 2012 20:22:53 +0000

The IMF is helping Europe explore politically-palatable alternatives to euro bonds as a way to help solve its worsening debt crisis.

Uncertain Businesses Go Into Wait-And-See Mode

Kathleen Madigan — Thu, 24 May 2012 18:55:36 +0000

Businesses have hit the pause button.

Fed’s George: Board Members Should Resign if Undermining Confidence

Kristina Peterson — Thu, 24 May 2012 16:35:02 +0000

A regional Fed bank president said board members should resign if they undermine public confidence in the central bank system.

ECB’s Nowotny Warns of ‘Massive Shocks’ From Greek Exit

WSJ Staff — Thu, 24 May 2012 16:05:27 +0000

A Greek exit from the euro-zone would have "massive" repercussions that no one fully understands, ECB governing council member Nowotny warned.

Kansas City Fed Reports Rebound in Region’s Manufacturing

Kathleen Madigan — Thu, 24 May 2012 15:30:30 +0000

Manufacturing activity in the Kansas City Fed's district this month recovered all the ground lost in April, according to a report released by the bank.

New Gauge Shows U.S. Factory Growth Slowing

Kathleen Madigan — Thu, 24 May 2012 13:59:11 +0000

A flash purchasing managers' index compiled by data provider Markit dropped to 53.9 in May from 56.0 in April, according to an economist who has seen the numbers. The Markit report said the index is the lowest since February.

Fed’s Dudley Doesn’t See Need for More Easing

WSJ Staff — Thu, 24 May 2012 13:37:42 +0000

Expectations for U.S. economic growth, while "pretty disappointing" at around 2.4%, is sufficient to keep the central bank from easing monetary policy, New York Fed President Dudley said.

Secondary Sources: Germany’s Bailout, Fed and Fiscal Cliff, Top Nation for Women

Phil Izzo — Thu, 24 May 2012 13:25:42 +0000

A roundup of economic news from around the Web.

Breaking Down Durable-Goods Orders and Jobless Claims

WSJ Staff — Thu, 24 May 2012 12:58:15 +0000

Vincent Malanga, president of LaSalle Economics, talks with Jim Chesko about a report showing that manufacturers� orders for durable goods edged higher by 0.2% in April after tumbling the previous month.

Vital Signs: New Home Sales Still Way Below Historical Average

Josh Mitchell — Thu, 24 May 2012 12:47:25 +0000

Sales of newly built, single-family homes rose 3.3% from March to a seasonally adjusted annual rate of 343,000, reversing the prior month�s decline.