Rite-Aid Closes in Chelsea
The Rite-Aid store on the corner of West 24th and 9th Avenue in Chelsea has recently closed.
U.S. Added 261,000 Jobs in October 2022
The employment figures released by the Labor Department indicated that 261,000 jobs were added to the economy in October 2022. The unemployment rate increased from 3.5% in September to the current 3.7%. As reported in the New York Times, the Federal Reserve is concerned that a “hot” job market is forcing employers to increase wages which is leading to higher prices resulting in more inflation. The Central Bank increased interest rates by 3/4% last week and is expected to continue to raise rates. The next rate decision by the Central Bank will be on December 14th.
Cannabis Stores Opening All Over Manhattan
Walking the streets throughout Manhattan you’ll see new convenience stores, smoke shops and stores that sell only cannabis-related products opening everywhere. These businesses are thriving at least for the time being. The stores are typically under 1,000 square feet and they usually open one store on a block but there are blocks that have more than one store – in some cases on the same side of the street. “Smoke and Vape” has been open on 9th Avenue in Hell’s Kitchen for years but this past week, “The Forbidden Cannabis” has opened a few doors north on the same block. Many stores sell soda, juices, pipes, etc. in addition to cannabis. The new store that opened last month on West 42nd Street and 9th Avenue, “The Green Light District” sells only different forms of cannabis and CBD.
The future of these new stores will ultimately be in the hands of the New York State Marihuana Regulation & Taxation Act (MRTA) which was signed into law on March 31, 2021 legalizing adult-use cannabis (also known as marijuana, or recreational marijuana). The legislation created a new Office of Cannabis Management (OCM) governed by a Cannabis Control Board to comprehensively regulate adult-use, medical, and hemp cannabis. The OCM will issue licenses and develop regulations outlining how and when business can participate in the new industry.
According to OCM, there will be 22 new licenses granted in Manhattan. A breakdown of the number of conditional adult-use retail dispensaries (CAURD) indicates that up 150 licenses will be award across 14 regions of the state, with most licenses in New York City and Long Island.
OCM states that the primary goal of the CAURD license is to create opportunities for New Yorkers harmed most by the prohibition of cannabis by granting up to 150 CAURD licenses to individuals who themselves, or their close family members, have had past eligible cannabis-related offenses and have ownership stakes in profitable businesses.
The New York Post reported that OCM spokesperson Aaron Ghitelman said that the newly opened unlicensed dispensaries “are illegal as there are no licensed adult-use cannabis sales at this time in the State of New York and we will work with our partners to enforce the law.” OCM has sent out more than 50 cease-and-desist letters, which warn shops that “any unlicensed sale of cannabis is illegal” and that “failure to cease this activity puts your ability to obtain a license in the legal cannabis market at substantial risk.”
It will be interesting to see how the city and state regulates the selling of cannabis products over the next several months.
Tipsy Shanghai Opens a New Location in Hell’s Kitchen
Tipsy Shanghai recently opened on 9th Avenue and 47th Street in Hell’s Kitchen. This restaurant has other locations in Manhattan.
Inflation Data Still High Through August 2022
Inflation data released by the Fed today indicates that the consumer price index or CPI continued very high at 8.2 percent in the year through September. When you remove the price increases for food and fuel, prices increased 6.6 percent. The Federal Reserve will continue to raise interest rates to try to control and bring down inflation. Inflation levels are running at 40 year highs and has been responsible to the large downturn in the stock and bond markets.
The monthly inflation data indicated that overall inflation rose 0.4 percent in September which was 0.3 percent higher than in August 2022. Inflation began to rise in January 2021 and has continued now at 40 year highs. Central bankers are expected to continue to raise interest rates which will essentially slow the economy but may also create a recession. Interest rates have been raised five times this year so far.
The new high inflation rate will likely confirm a three-quarter point increase to interest rates in November and even in December 2022.