Businesses Want To Raise Prices, But Customers Have Had Enough

U.S. consumers have a message for businesses, and it rang out loud and clear in a Federal Reserve report Wednesday: They are not going to pay $20 for a hamburger.

The Beige Book, a compilation of anecdotal reports from regional Fed banks arou💧nd the country, was shot through with o𓆉bservations that shoppers everywhere are fed up with high prices, leaving many businesses reluctant to raise them. 

Those feelings were summed up by a Montanaꦆ business owner who told the Minneapolis Fed he was trying to avoid passing further cost increases to his customers. “At some point, they will say, ‘I am not paying $20 for a hamburger,’” the report quoted the owner as saying. 

The report provided a striking example of how household budgets, already stretched by high inflation since 2021, are reaching their limit for how much they’re willing to spend on things. Customer pushback is leading merchants to offer discounts in hopes of winning back or retaining patrons. For example, fast food restaurants including McDonald’s and Burger King, have begun offering “value meal” promotions.

The Beige Book suggested the phenomenon is widespread. Read more about consumers' limits to absorb costs here.

Cleveland Fed Taps Goldman Partner As New President

A partner at 澳洲幸运5官方开奖结果体彩网:Goldman Sachs will serve as the next president of the 澳洲幸运5官方开奖结果体彩网:Cleveland Federal Reserve Bank, replacing President Loretta Mester, whose term expires on June 30.

Beth Hammack, who was most recently the co-head of global financing at Goldman, will oversee the Fourth Federal Reserve District that includes Ohio, western Pennsylvania, eastern Kentucky and the northern panhandle of West Virginia. She is scheduled to take office August 21, with the bank’s First Vice President Mark Meder serving in the interim period after Meste🅘r’s departure. 

Hammack, who started at Goldman in 1993 and was made a partner in 2010, brings more than 30 years of experienc🎶e to the position. Hammack’s announcement ends a six-month search by the Cleveland Fed’s board of directors. 

“Beth has a deep understanding of financial markets and the monetary policy transmission process, expertise in leading complex business lines, and a proven commitment to mission,” said Heidi Gartland,𝓀 chair of the search committee, and chief government and community relations officer at University Hospitals.

-Terry Lane

Uptick in Mortgage Rates Undercuts Demand

Demand for home loans declined to its lowest levels since March, stepping back amid the first increase in 澳洲幸运5官方开奖结果体彩网:mortgage rates🎶 in four weeks, data from the Mortgage Bankers𒀰 Association showed.

Applications for mortgage loans were 5.7% lower to end the week of Mayও ✱24, likely depressed by an increase in the 30-year, fixed-rate mortgage to 7.05%.

“Borrowers remain sensitive to small increases in rates,ℱ impacting the refinance market and keeping purchase applications below last year’s levels,” said MBA Vice President Joel Kan.

Home purchases declined 1% and mortgage loan refinancing dropped 14% when 澳洲幸运5官方开奖结果体彩网:compared with the prior week. 

Kan noted low inventory continued to 澳洲幸运5官方开奖结果体彩网:drag down the housing market. 

“There contin🐈ues to be limited levels of existing homes for sale and many buyers are struggling to find listings in their price range that meet their needs,” Kan said. 

-Terry Lane