Last month, Carey Cherner, a 36-year-old used car dealer in Kensington, Maryland, sold a 2001 Ford F-150 pickup truck in less than 12 hours. The mileage is 184,000 miles. It sells for $7,500-50% higher than usual.
Cherner’s experience is not one-off in the US used car market, where prices are rising rapidly. The industry is at the core of the country’s growing inflationary pressures and has therefore become a subject of great interest to policymakers in Washington.
“There are more people buying cars than there are cars on the market, which makes it a little crazy,” Cerner said.
Unusually, officials pay close attention to used car prices as an indicator of future inflation paths. If price increases become entrenched and spread to other parts of the economy, the United States may face prolonged overheating for the first time in decades. Presented a big challenge Economic decision makers at the Federal Reserve and Joe Biden.
Bonds yields were nearly flat in premarket trading on Wednesday, as investors digested last week’s inflation data. All eyes are on Friday’s jobs report.
By Natasha Turak, CNBC •
Updated 1 hour ago
John Zich | Bloomberg | Getty Images
Bonds yields rose on Tuesday, as investors digested last week s inflation data and look ahead to Friday s all-important jobs report.
The yield on the benchmark 10-year Treasury note ticked up to 1.6130%, while the yield on the 30-year Treasury bond rose to 2.2924%. Yields move inversely to prices.
Download our mobile app for iOS
to get alerts for local breaking news and weather.
ISM manufacturing new orders, prices and employment for May are due Tuesday, as well as May s Dallas Fed Manufacturing Index. Formerly known as the Purchasing Manager s Index (PMI), the ISM index tracks month-on-month shifts in output rates.