U.S. poverty rate rises for second year

The U.S. poverty rate climbed for a second straight year in 2021 and household income slipped slightly as the economy slowly started a recovery from the COVID-19 pandemic.

The poverty rate rose to 11.6% from 11.5% in the prior year, annual data released Tuesday by the U.S. Census Bureau showed.

It reached the lowest in six decades in 2019. Last year, 37.9 million people were in poverty, about 3.9 million more than 2019.

The U.S. poverty rate has been roughly cut in half over the past 60 years.

Median, inflation-adjusted household income decreased last year to $70,784. It has declined about $2,000 over the last two years but has risen by about $20,000 since 1967.

There was a clear divergence between the wealthy and the poor: Median incomes at the 90th percentile rose to $211,956 in 2021, while incomes for those among the bottom 10th fell to $15,660.

Markets suffer broad losses

Wall Street recoiled Tuesday - with the Dow Jones industrial average nosediving more than 1,200 points - after a new government report showed that consumer prices continued rising in August despite efforts to slow their momentum.

The inflation data instantly dashed Wall Street’s hopes that the Federal Reserve might ease up on its campaign of aggressively raising interest rates.

The Dow tumbled 1,276 points, or 3.9% , following the release of the report, which showed prices unexpectedly climbed 0.1% from July to August. The tech-heavy Nasdaq fell more sharply, shedding nearly 5.2% , while the S&P 500 slumped 4.3% . It was the stock market’s biggest one-day decline in more than two years.

The two-year Treasury yield, the most sensitive to policy changes, jumped as much as 22 basis points, pushing it more than 30 basis points above the 10-year rate and deepening an inversion in what is generally a recession warning.

The consumer price index increased 0.1% from July, after no change in the prior month, Labor Department data showed Tuesday.

From a year earlier, prices climbed 8.3%, a slight deceleration but still more than the median estimate of 8.1%.

Starbucks puts money into stores

Starbucks is investing an additional $450 million to revamp its stores in North America with better equipment – a move to appease the chain’s baristas, who have been unionizing across the U.S.

Starbucks is planning to add 2,000 new locations in the U.S. by 2025, the Seattle-based chain said during its annual investor meeting on Tuesday.

That includes more pickup, drive-thru-only and delivery-only restaurants to better serve diners on the go, the company said.

Customers can also expect an enhanced mobile app that makes it easier to order and anticipate when that order will be ready.

Earlier this year, interim Chief Executive Officer Howard Schultz pledged to overhaul the Starbucks experience for its baristas and customers alike.From wire reports