{"id":25824,"date":"2024-04-08T03:23:21","date_gmt":"2024-04-08T08:23:21","guid":{"rendered":"https:\/\/ustower.net\/?p=25824"},"modified":"2024-04-08T03:23:26","modified_gmt":"2024-04-08T08:23:26","slug":"bidens-manufacturing-industry-is-expanding-that-could-be-bad-for-inflation","status":"publish","type":"post","link":"https:\/\/ustower.net\/?p=25824","title":{"rendered":"Biden\u2019s manufacturing industry is expanding. That could be bad for\u00a0inflation"},"content":{"rendered":"\n

American manufacturers have been squeezed for the past two years by lingering supply-chain disruptions and high interest rates<\/u><\/a>, but the industry finally expanded in March for the first time in 16 months, according to the Institute for Supply Management.<\/p>\n\n\n\n

But a resurgence in the industry could complicate the Federal Reserve\u2019s ongoing inflation fight, either delaying the first interest rate cut or resulting in fewer cuts this year<\/u><\/a>, some economists say. Interest rates have been at a two-decade high since July, after the Fed raised rates aggressively over the prior year and a half.<\/p>\n\n\n\n

ISM\u2019s latest purchasing managers index for the US manufacturing sector, a monthly survey that gauges economic activity, rose more than expected in March to a reading of 50.3, the first time the index has registered above 50 since September 2022. A reading above 50 indicates expansion, while anything below reflects contraction.<\/p>\n\n\n\n

President Joe Biden has signed into law major spending packages passed by Congress, such as a bipartisan infrastructure bill and the CHIPS and Science Act, allowing manufacturers to spend on new factories to ramp up production.<\/u><\/a><\/p>\n\n\n\n

However, several Fed officials have said in recent speeches that persistent economic strength allows the central bank to remain patient and hold rates steady while they wait for more evidence that inflation is truly headed toward their 2% goal. Consumer prices were up 2.5% in February from a year earlier<\/u><\/a>, according to the Fed\u2019s favorite inflation measure.<\/p>\n\n\n\n

\u201cIn the interim, I think it is smart for the Fed to take our time,\u201d Richmond Fed President Tom Barkin said Thursday at an event in Richmond, Virginia. \u201cNo one wants inflation to reemerge. And, given a strong labor market, we have time for the clouds to clear before beginning the process of toggling rates down.\u201d<\/p>\n\n\n\n

San Francisco Fed President Mary Daly was asked Tuesday to directly weigh in on ISM\u2019s latest manufacturing data during a moderated discussion in Las Vegas. She said it didn\u2019t change her overall assessment of the US economy.<\/p>\n\n\n\n

\u201cThat is just one data point in the sea of data that we collect,\u201d Daly said. \u201cYou want to step back and say \u2018what\u2019s been happening?\u2019 and there I see that the economy continues to remain very solid. No matter where you look, you see strength.\u201d<\/p>\n\n\n\n

But the stock market kicked off the second quarter last week on a sour note<\/u><\/a>. Wall Street was spooked by economic data from the prior week showing that price pressures persisted in February and consumer spending surged that month. Friday\u2019s jobs report showed that the economy added 303,000 jobs in March<\/u><\/a>, far more than the 205,000 expected. Fed Chair Jerome Powell said the Fed is in no rush to cut rates<\/u><\/a>, a sentiment underscored by Minneapolis Fed President Neel Kashkari.<\/p>\n\n\n\n

\u201cIf we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all,\u201d Kashkari said during a virtual event Thursday afternoon. His comments triggered a selloff on Wall Street, with the Dow falling more than 500 points.<\/u><\/a><\/p>\n\n\n\n

\u201cThis report will make the Fed\u2019s job a little trickier, and it will undoubtedly be happy the market is still not anticipating rate changes until June or July, giving it that much more time to continue to watch the data roll in,\u201d Richard de Chazal, macro analyst at William Blair Equity Research, said in a note released Monday.<\/p>\n\n\n\n

The economy picking up further strength would spook Wall Street because of what it means for interest rates \u2014 and some manufacturers say they\u2019re optimistic about the future.<\/p>\n\n\n\n

\u201cBusiness activity is up. Many manufacturers are anticipating better business in the second quarter and much better in the third quarter. They are reporting that second-quarter bookings are just starting to ramp up,\u201d a wood products manufacturer told ISM in the survey.<\/p>\n\n\n\n

Another manufacturer said that they\u2019re \u201cexpecting to see orders and production pick up for the second quarter.\u201d<\/p>\n\n\n\n

\u201cSuppliers are working with us to help drive costs down, which will help improve the margin for the rest of the year and deliver growth in 2025,\u201d they said.<\/p>\n\n\n\n

When Amazon debuted cashier-less technology, <\/strong>it was hailed as the future of retail<\/u><\/a>. But now, Amazon is walking back its \u201cJust Walk Out\u201d technology at its grocery stores, reining in grand promises of an automated, friction-less checkout, reports my colleague Ramishah Maruf.<\/p>\n\n\n\n

Amazon said it is removing the technology at US Amazon Fresh grocery stores that allows customers to pay for their groceries without waiting in line for a cashier or <\/strong>using a self-checkout machine. Instead, Amazon said it\u2019s replacing it with Dash Cart at its more than 40 locations, a \u201csmart shopping cart\u201d that allows shoppers to scan groceries, link to online shopping lists and check out their groceries. The company has been testing Dash Carts at some Fresh and Whole Foods locations in the past.<\/p>\n\n\n\n

Customers just haven\u2019t bought into cashier-less technology, especially in grocery stores where they purchase larger quantities and face extra tasks such as weighing produce. Amazon said the checkout technology may be more seamless in smaller stores.<\/p>\n\n\n\n

In a statement, Amazon said it will continue using the Just Walk Out technology in Amazon Go stores, at smaller format Fresh stores in the UK, and third-party locations such as certain sports stadiums and college campuses. Amazon had used roughly 1,000 humans in India, according to some news reports, to help monitor accurate checkouts.<\/p>\n\n\n\n

Cnn<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

American manufacturers have been squeezed for the past two years by lingering supply-chain disruptions and high interest rates, but the industry finally expanded in March for the first time in 16 months, according to the Institute for Supply Management. But a resurgence in the industry could complicate the Federal Reserve\u2019s ongoing inflation fight, either delaying the […]<\/p>\n","protected":false},"author":5,"featured_media":25825,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155],"tags":[27724,1169,3672,1252,1933],"class_list":["post-25824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-amazonas","tag-biden","tag-federal-reserve","tag-inflation","tag-manufacturing"],"_links":{"self":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/25824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25824"}],"version-history":[{"count":1,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/25824\/revisions"}],"predecessor-version":[{"id":25826,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/25824\/revisions\/25826"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/media\/25825"}],"wp:attachment":[{"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}