top of page
  • LinkedIn Social Icon
Search

Near-Record High Real Profit Margins Indicate Fed Has A Lot More Work To Do

  • Writer: Joe Carson
    Joe Carson
  • Mar 30, 2023
  • 1 min read

Nonfinancial Companies' real profit margins at 15.4% for Q4 2022 were unchanged from one year ago. That's a remarkable performance because companies could navigate a rising rate environment and wage pressures and maintain near-record high margins. That also helps to explain why there has yet to be a significant rise in the unemployment rate-- -no need to get rid of people with near-record high profits margins. The path to weaker labor markets and reduced inflationary pressures come from declining profit margins---the margin data indicates that the Fed has a lot more work to do.



 
 
 

Recent Posts

See All
American Exceptionalism IS Dead

Trump wants to choose who should lead the Fed and who should leave when they don't follow his wishes. Trump seeks to determine who should...

 
 
 

1 comentario


Aaron Schindler
Aaron Schindler
30 mar 2023

Great blog, Joe! Do you watch the velocity of money? Based on the quantity theory of money (money supply × velocity of money = price level × real GDP), changes in velocity are directly proportional to the inflation rate. It's reported with a lag, but this morning's latest report on velocity shows that it seems to be accelerating: Velocity of M2 Money Stock (M2V) | FRED | St. Louis Fed (stlouisfed.org) I agree that the Fed has more than one additional rate rise up its sleeve.

Me gusta

Stay in the know

Thanks for submitting!

  • Grey LinkedIn Icon

© 2023 by Talking Business.  Proudly created with Wix.com

bottom of page