Signs of a Slowdown Are Becoming Hard to Ignore

Signs of a Slowdown Are Becoming Hard to Ignore By Hardika Singh

As evidence mounts that the economy is slowing, pressure to lower rates could build. Meanwhile, learning the tax rules on gold could help avoid costly mistakes. And how a data glitch at the NYSE led to brief but huge crashes for some stocks, including Berkshire Hathaway. Read on for this news and more.

Top News Heard on the Street: The Fed Might Soon Have to Worry About More Than Just Inflation

The U.S. economy continues to lose momentum . Growth hasn't yet slowed to the point that it would be a concern to policymakers, according to my colleague Aaron Back - but it might soon if current trends continue.

Investors' attention on Friday was initially focused on the personal-consumption expenditures price index, part of a package of data released by the Commerce Department. That makes sense since it is the Federal Reserve's preferred measure of inflation and will help them decide whether or not to cut rates before November's U.S. presidential election.

But accompanying data on underlying economic activity turned out to be more significant.

U.S. Economy You Bought Gold at Costco. What Are the Taxes When You Sell It?

Gold is glittering. Recently, the spot price was around $2,360 an ounce, up about 21% in the past 12 months. Some buyers are snapping up gold bars and coins offered by Costco, while others are investing in funds holding bullion.

Financial Regulation Data Glitch Causes Apparent Crash of Over 99% in Berkshire Hathaway, Other Stocks

Warren Buffett's Berkshire Hathaway and several other stocks showed calamitous price drops on Monday morning before recovering, due to a glitch at a key stock-market data feed operated by the New York Stock Exchange.

Forward Guidance Tuesday (all times ET)

10 a.m.: Job Openings and Labor Turnover Survey

Wednesday

8:15 a.m.: ADP National Employment Report

9:45 a.m.: Bank of Canada interest rate announcement

9:45 a.m.: U.S. Services PMI

10 a.m.: Global Services PMI

Research Housing Affordability Tops The Election List For Gen Zers

What's a more important issue to Gen Zers than the economy or education? Housing affordability. About 91% of adult Gen Zers say housing affordability is important when considering who they will vote for in the upcoming presidential election, making it the top issue for that generation, says a Redfin survey. Millennials, Gen Xers and baby boomers were all more likely to say the strength of the overall economy was an important factor in their presidential pick than any other issue. The issue is particularly important to young Americans because they are aging into homeownership: Only 26% of adult Gen Zers already own a home. - Chris Wack

Basis Points The crypto industry is angling to put smaller and riskier tokens into exchange-traded funds after recent ETF approvals fueled a surge in bitcoin and ether prices. At last week's Consensus conference in Austin, Texas, crypto firm Ripple's chief executive Brad Garlinghouse said ETFs holding Solana, Ripple's XRP coin and Cardano are "inevitable" after the Securities and Exchange Commission approved stock exchanges' filings to list ether ETFs. The agency hasn't approved individual asset managers' applications to launch them. - Vicky Ge Huang Two years into a nearly $53 billion government effort to shore up the U.S. chip industry , the program's impact is becoming clearer: Big companies making advanced chips are getting a boost, but there are limits to what the money can do. - Asa Fitch U.K. retail sales ticked higher last month , recovering some previous decline ahead of general elections slated for July, according to a report. - Joshua Kirby Cheap Chinese high-tech goods have flooded the global economy this year , raising alarms in Washington and Brussels as Western businesses complain about what they see as a new round of unfair competition. - Nathaniel Taplin South Korea's headline inflation slowed to a 10-month low but still remained above the central bank's 2.0% target, likely reinforcing views that the bank is in no rush to start easing its monetary policy. - Kwanwoo Jun About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [[e-mail]].

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

06-04-24 0716ET