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Reuters — Economy — Inflation — Retail & Consumer — Monetary Policy — Interest Rates

Few signs of US companies curbing profits after Powell says it could cool inflation

Federal Reserve Chair Jerome Powell said this week that inflation can be curbed if companies reduce their profits. Gross profit margins have remained flat or slightly down at manufacturers and sellers of household basics.

1 min read
  • Federal Reserve Chair Jerome Powell said this week that inflation can be curbed if companies reduce their profits.
  • Gross profit margins have remained flat or slightly down at manufacturers and sellers of household basics like toilet paper and cereal.
  • Companies have passed through once-in-a-generation levels of price hikes to try to keep the financial health steady.
  • Kraft Heinz, Clorox and PepsiCo have indicated they are pressing pause on further raising prices.
  • Former Federal Reserve Vice Chair Lael Brainard said that retail margins have risen significantly more than wages for the typical store associate.
Few signs of US companies curbing profits after Powell says it could cool inflation
Federal Reserve Chair Jerome Powell said this week inflation could fall if companies curbed their profits - but the biggest U.S. retailers and consumer products makers have reported one key measure of profitability hardly budging in recent years.
Reuters

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