It was a big week for economic news this week, with a FOMC meeting, and GDP and PCE Index releases. This week’s list is rounded out with news of a new crypto launch, some interesting articles about investing, taxes, retirement, a little Barbie news, and would you be financially prepared for a strike?

Economics

• The Fed raised interest rates another 25 basis points this week to the highest level in 22 years. Read or listen to CNBC commentary/market response.
• The ECB central bank also raised rates by 25 basis points as European inflation continues. (Reuters)
• Data releases this week included second quarter GDP, which came in at 2.4%, way above expectations. The Fed’s preferred inflation measure was also released. (Seeking Alpha) (CNN) (CNBC)
  • PCE price index up 2.6% compared with the 4.1% increase in Q1.
  • Core PCE price index: +3.8% +4.0% expected and +4.9% in Q1.
  • Personal consumption expenditures: +1.6% +1.5% expected and +4.2% prior.
  • The personal saving rate was 4.4% in Q2, a tick higher than 4.3% in Q1, the BEA 
• Wage growth also slowed last quarter. (Yahoo Finance)
• Are we in for a soft landing? Jeanna Smialek gives some historical perspective to the current moment. (NYT)
• The Conference Board released its July Consumer Confidence Index. At 117, it is the highest it has been in two years, and up significantly from the previous month’s 110. (Axios)

Cryptocurrency

• Sam Altman, the man behind OpenAI, launched cryptocurrency “WorldCoin” on Monday. Will eyeball scans make you comfortable with this one? (Reuters)

Investing

• A Wealth of Common Sense breaks net wealth in America down to assets vs. debt, and by asset type, explaining the likely reason the rich have gotten richer.
• Higher home prices and mortgage rates are exacerbating the affordability gap in housing, and current homeowners are locked in with their current low interest rates, keeping inventories low and driving prices up further. (Fortune, subscription may be required.)

• Will the Barbie movie revive the Barbie doll, or just add royalty income to Matel’s bottom line? (Reuters)

Taxes

• The IRS will no longer make unannounced in person visits to homes and offices to protect employees and also to fight scammers. (WCVB Boston)

Personal Finance

• Michelle Singletary of the Washington Post gives advice on how to manage your finances if you are or may be impacted by one of the labor strikes going on this summer. (WAPO)

Retirement

• Should everyone contribute to tradition IRAs and 401k’s, or would are the Roth (after tax) versions preferable? Advisors debate this, but it really comes down to what you think your tax bracket will be in retirement compared to while you are earning. Investment News

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.