Speaking at the International Monetary Conference on June 5, Federal Reserve Chairman Ben Bernanke said that core inflation, measured over the past three to six months, was “unwelcome.” His remarks could signal another rise in the Federal Funds rate — the rate at which banks lend one another money — when the Federal Open Market Committee meets on June 29.

The U.S. trade deficit increased from $61.9 billion to $63.4 billion, less than the $65 billion forecast by economists, the government announced June 9. While this may represent, as many economists believe, a slow-down in the decrease of trade with Europe and Japan, the deficits with China and OPEC nations both increased.

Consumer borrowing rose at an annual rate of 5.9% in April, a significant jump over March’s tiny 0.8% increase, the Federal Reserve reported June 7. It is unclear how long the rebound in borrowing will last given May’s drop in consumer confidence that was attributed to concerns over soaring energy prices.

The Labor Department reported on June 8 that the number of people filing for unemployment fell by 35,000 to 302,000 for the week ending June 2. Analysts had expected a much smaller decline of about 6,000. The slide was the biggest one-week improvement since September.

For the week ending June 2, U.S. mortgage applications dipped to their lowest level this year, despite a fall in interest rates, the Mortgage Bankers Association said June 7. The MBA’s Composite Index, which shows the change in application volume, fell 1.4% to 534.4 from the previous week’s 541.9.

This week look for updates on the Consumer Price Index on June 14

Posted June 12 by Jeff Melancon