Business briefs
Fed inflation gauge hints at moderation
The Federal Reserve’s preferred inflation gauge remained high but showed glimmers of moderation in May at a moment when central bankers are watching each incoming price data point worriedly and are rapidly raising interest rates to wrestle cost increases under control. The personal consumption expenditures price measure, which the Fed officially targets when it aims for 2% inflation on average over time, climbed 6.3% in the year through May, matching the April increase. Over the past month, it picked up 0.6%. But after stripping out food and fuel prices, which can be volatile, the PCE measure climbed 4.7% over the past year, down slightly from 4.9% in the prior reading. On a monthly basis, that core measure picked up 0.3% compared with the prior month, roughly matching the previous few months.
Samsung says new chips are more powerful, efficient
Samsung Electronics kicked off mass production of 3-nanometer chips that are more powerful and efficient than predecessors, beating rival Taiwan Semiconductor Manufacturing Co. to a key milestone in the race to build the most advanced chips in the world. South Korea’s largest company will begin with 3nm semiconductors for highperformance and specialized lowpower computing applications before expanding to mobile processors. By applying so-called GateAll-Around transistor architecture, Samsung’s 3nm products reduce power consumption by up to 45% and improve performance by 23% compared to 5nm chips, it said.
Home listings jump in U.S. market turnabout
The housing slowdown is helping to solve the U.S. real estate market’s most intractable problem: tight inventory. With fewer buyers competing, the number of active U.S. listings jumped 18.7% in June from a year earlier, the largest annual increase in data going back to 2017, Realtor.com said. New sellers entered the market at an even faster rate than before the pandemic housing rally began.
Mortgage rates dip as recession fears mount
After being prodded higher by inflation fears, mortgage rates were dragged down this week by recession concerns. According to Freddie Mac, the 30-year fixedrate average dropped to 5.7% with an average 0.9 point. It was 5.81% a week ago and 2.98% a year ago. The 15-year fixed-rate average also moved lower, falling to 4.83% with an average 0.9 point. It was 4.92% a week ago and 2.26% a year ago. The five-year adjustable rate average rose to 4.5% with an average 0.3 point. It was 4.41% a week ago and 2.54% a year ago.