Mixed Economy Signals Ahead of Next Fed Meeting

A strong economy is bringing mixed messages ahead of the next Federal Reserve meeting. Jobless claims dropped to an estimated 187,000 last week, a number not seen since September 1969.

This bit of good news is underscored by a strong stock market and an artificial intelligence boom, signs President Donald Trump has pointed to for his read on the economy. However, there have been undeniable economic rain clouds as well.

The inability to bring the war in Iran to an end and reopen the world's biggest shipping waterway has meant oil and gas prices are spiking once again, impacting not just the cost to fill up at the pump but also the price of groceries and travel. As a result, there is expanding risk of increasing inflation.

Predicting that inflation will look closer to 3.5% this year, which would erase real income gains for many Americans, Josh Bivens, Chief Economist with the Economic Policy Institute, expressed his concerns about the economy's future.