Page 21 - Hillary Hoffower News Today

Thomson Reuters The Fed is "carefully" watching the housing market as huge demand sends prices soaring, Chair Jerome Powell said. The central bank doesnt see "the kind of financial stability concerns" that fueled the 2008 crash, he added. Powell said he hopes homebuilders react "and come up with more supply," which would also boost job growth. The housing market boom has caught the Federal Reserve s attention. ...

Lucy Nicholson/Reuters The economic theory of "Optimum Currency Area" (OCA) might explain why. The US is commonly thought of as an OCA, but $1 goes a lot further in Mississippi than it does in Hawaii. The federal minimum wage is currently at a standstill. President Joe Biden campaigned on raising the minimum wage from $7.25 to $15. But the $15 proposal was struck from his stimulus plan for not meeting the rules of budget reconciliation. Progressives have long been ...

JodiJacobson/Getty Images Affordable home sales only grew by 7% in the same period. The disparity is a byproduct of Americas K-shaped recovery as wealth inequality deepens. Luxury home sales are soaring. They increased by 41.6% in the first three months of 2021 over the first three of 2020, according to a recent Redfin report that defined luxury homes as those selling for an average of $975,000. Its a sharp contrast from sales for what Redfin deems "affordable" hom...

Pool/Getty Images Theres a wealth gap among very high net worth individuals, per a new Wealth-X report. Those worth $15 million to $30 million make up just 16% of that cohort, but account for double the wealth. It shows just how concentrated wealth really is at the top, and how stark inequality is. Even millionaires have a wealth gap. One out of every 10 millionaires has a net worth between $5 to $30 million, which Wealth-X defines as "very high net worth" (VHNW) i...

At least, through stock and bond investments. The generation can expect average annual real returns of just 2% on their investment portfolios, according to Credit Suisses global investment returns yearbook. Thats a third less than the 5%-plus real returns that millennials, Gen X, and baby boomers have seen. Credit Suisses analysis took in average investment returns since 1900 and forecasted them going forward for Gen Z.  That difference sounds slim in the short-term, but looks a lot larger i...

Millennial demand for homes left America short of 2.5 million houses, Jefferies writes. Contractors need to build at least 2 million to meet demand.

Roy Rochlin/Getty Images Gen Z will earn a third less on stock and bond investments than past generations, Credit Suisse found. They can expect average annualized returns of just 2%, according to the banks investment returns yearbook. Another obstacle for Gen Z: theyve been the most unemployed during the pandemic. Gen Z is walking a rocky road to getting rich. Theyre set to earn less than previous generations on stocks and bonds, according to Credit Suisses global...

JOSH EDELSON/AFP/Getty Images Facebook is converting part of its headquarters into a COVID-19 vaccination site. The vaccination site is intended for "underserved, hard-hit communities," COO Sheryl Sandberg said.  Californians over the age of 16 are eligible to be vaccinated starting on April 15. Part of Facebooks sprawling Menlo Park, California, campus is being converted into a COVID-19 vaccine site. "Were partnering with Ravenswood Family Health Network to conve...

David Santiago/Miami Herald/Tribune News Service via Getty Images A Zillow survey found that 11% of Americans moved during the pandemic, mostly for positive reasons. Life and financial uncertainty were main reasons homeowners havent listed their homes for sale. There are 40% fewer homes on the market than last year, and experts expect inventory to remain at record lows. The pandemic has taken a financial and emotional toll on the country, but a new survey found tha...

Drew Angerer/Getty Images Some experts fear households will quickly spend their savings and fuel runaway inflation. Studies suggest most will hold onto the cash even after the US reopens, Fed researchers said. Gradual reopening and widespread vaccination have economists wondering how Americans will spend in a post-pandemic economy. Researchers at the Federal Reserve Bank of New York see little cause for concer...