Category Archive

JANUARY 14, 2019 – POWELL TRIES TO DISPEL RECESSION FEARS Last Thursday, Fed Chair Jerome Powell addressed the Economic Club of Washington DC.  He doesn’t think the US economy is on the verge of a recession. Rather, he thinks “The US economy is solid. It has good momentum coming into this year.” Powell said the Fed is watching the situation …

JANUARY 7, 2019 – NEW JOBS SOAR; FEARS OF RECESSION ABATE The Labor Department released data that the US economy created an astounding number of jobs in December: 312,000, double the 155,000 created in November, and well over expectations for 180,000.  The numbers are the best posted since February. 2.64 million new jobs were added over the course of 2018.  …

DECEMBER 17, 2018 – WILL THE DECEMBER RATE HIKE BE THE LAST FOR A WHILE? A week ago, James Bullard, St. Louis Federal Reserve President, said the central bank may consider postponing its anticipated December rate increase because of an inversion of the yield curve.  Bullard; known to be dovish and a non-voting member this year; feels the current level …

DECEMBER 10, 2018 – JOB GAINS SLOW IN NOVEMBER, BUT WAGES COME IN STRONG AGAIN The US economy added 155,000 new jobs in November, below expectations of 198,000 jobs.  The unemployment rate held steady at 3.7 percent, while wage growth also equaled October’s results with 3.1 percent year-over-year growth. The Labor Department’s data for November dispels recession fears.  2018 is …

DECEMBER 3, 2018 – FED CHAIR HINTS RATE INCREASES ARE TOPPING OUT Fed Chair Jerome Powell spoke at the Economic Club of New York last week.  Stocks surged after he said the central bank may be closer to ending its push to increase interest rates. Powell said the Fed’s benchmark rate was “just below” the neutral level, a change from …

NOVEMBER 26, 2018 – OIL PRICES PLUNGE TO ONE-YEAR LOWS: BUYING OPPORTUNITY The big news in the Thanksgiving holiday-shortened week was oil prices falling to their lowest levels in more than a year following a rapid seven week sell-off. On Friday, oil had its largest one-day decline since July 2015, falling 7.7 percent. Geopolitics, a weakening world economy, as well …

NOVEMBER 19, 2018 – POWELL SPEAKS IN DALLAS: ALL FOMC MEETINGS ‘LIVE’ FOR RATE HIKES Fed Chair Jerome Powell was interviewed by Dallas Fed President Robert Kaplan in Dallas last week.  Powell said he was confident in the strength of the US economy, and the markets need to expect the central bank could raise rates at any meeting, starting in …

NOVEMBER 12, 2018 — DATA CONTINUES TO PLEASE; FED SPEAKS TO RATE INCREASE Preliminary numbers on consumer sentiment were released Friday; they came in slightly above expectations. The index is on track for its best year since 2000. Consumers’ income expectations have improved and growth in employment is anticipated to continue, but they also foresee rising inflation and interest rates. …

NOVEMBER 5, 2018 – OCTOBER JOBS NUMBERS CRUSH AND WAGES MOVE UP Expectations were crushed as the Labor Department reported the US economy added 250,000 jobs in October. The unemployment rate held steady at 3.7 percent, a 49-year low, while year-over-year wage gains were up over 3 percent for the first time since the Great Recession. The big job gains …

OCTOBER 29, 2018 – GDP ACCELERATED IN Q3; RATE INCREASE IN DECEMBER ON TRACK Gross domestic product data last week showed the US economy grew by 3.3 percent in the third quarter, down from the 4.2 percent growth seen in Q2, but it remains a robust number.  The economy has expanded at a 2.9 percent annual rate since April 2017, …