Personal Income Drops in the U.S.

Job losses contribute to lower personal income

With unemployment at a 26-year high, it is no surprise that personal income is beginning to drop. Indeed, personal income in the U.S. has dropped as job losses mount. FX Street reports on what this means for the economy going forward:

The Feds expect inflation to remain subdued over the course of this year, as the downside pressures from the recession should continue to weigh down on prices and accordingly inflation should remain under control despite the recent rise in energy prices, which could increase upside risks to inflation over the long term.

The news is affecting U.S. stock futures, sending them lower after yesterday’s rally. Additionally, the personal income news brings to light the fact that economic recovery is going to be a slow road.