Economic Snapshot: Fed Holds Rates, Growth Slows, Labor Costs Rise, and Visa Cuts Jobs
The Fed holds rates steady while U.S. growth slows to 1.5%, labor costs and wages rise in Q2, and Visa announces 2,600 job cuts as it pursues greater efficiency.
Fed Holds Steady On Interest Rates
As President Donald Trump continues to press the Federal Reserve to drop interest rates, the Fed’s Board of Governors this week voted to leave rates where they are, in the 3.50%-3.75% range.
Not only did the Fed not reduce the rate, three of its 12 governors actually wanted to raise rates. Read Full Article
U.S. Economic Growth Slows to 1.5%
The U.S. economy slowed to a 1.5% growth pace from April through June – the government had revised first-quarter growth to 1.6% — as increases in consumer and business spending were partially offset by a drop in government outlays, the Commerce Department said Thursday. Read Full Article
Labor Costs, Wages Show Second-Quarter Rise
Job growth picked up between March and May, bringing a resultant hike in labor costs.
According to statistics released by the U.S. Department of Labor, labor costs rose more than expected in the second quarter as private-sector wage growth picked up. Read Full Article
Seeking efficiency, Visa Cutting 2,600 Jobs
Visa CEO Ryan McInerny is reportedly looking for ways to increase efficiency, and announced the elimination of some 2,600 jobs to find them.
According to a report from Bloomberg, the cuts represent roughly 7% of the workforce and will primarily affect the technology and product teams, McInerney said in a staff memo seen by Bloomberg. Read Full Article