More signs appeared this week that the economy may be cooling off a bit, except for the job market. Despite big tech layoff announcements, initial jobless claims remain at very low levels. The market appears to be having its first down week of the year, and the debt ceiling is closing in.

Economics

• Retail sales dropped for a second month in a row, and dropped more than expected in December. Producer Prices dropped in December too. Find a breakdown on which product categories dropped (and rose) and an explanation of the data here. (Reuters)
• What actually happens when the US hits its debt ceiling, and what does Janet Yellen have to do to keep the government running with this looming? (AP News) (CNN)
  
  • (We have been here before. Here is an EconExtra post from 2021 on the debt ceiling if you need more on the topic.)
• Weekly jobless claims actually fell last week. (CNBC)
• Big tech layoffs keep coming. Read about Microsoft (The Verge) and Alphabet (Yahoo Finance)
• What China’s population decline, the first in sixty years, means for the rest of the world. (CNN)
• Does the public really understand the relationship between interest rates and inflation? Survey data suggests the answer is no. (Klement on Investing)

Investing

• The market dipped this week. We will see what happens in coming days as the market anticipates what actions the Fed will take at its next meeting. (CNBC)
• There is much buzz about Netflix as it well surpasses expectations for subscribers in the fourth quarter. Its CEO is stepping down, and they vow to crack down on password sharing. (CNBC)

Crypto

• Read Harvard Business and Law School professor Mehir Desai describe his feelings about cryptocurrency, using the term “magical thinking. ” (NYT)
• Despite recent crypto losses, bankruptcies and fraud charges, blockchain devotees remain upbeat. Read why here. (NYT)

Personal Finance

• Read all the details of the new High School Personal Finance Requirement in Michigan. (WXYZ)
• What level of income does it take to be in the top 1%, 5%, or 10%? (Of Dollars and Data)

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.

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