September – October 2018

U.S. Economic and Market Highlights

  • The year-over-year reading for Core Personal Consumption Expenditure (PCE) rose to 2.0%. This is the Fed’s preferred inflation measure and is right on target.
  • However, given that U.S. GDP growth rising above a 3.5% annualized rate in the third quarter the expectation is for inflation to rise above the Fed’s target rate.
  • Rising wages could add upward pressure on inflation, which will give the Fed further support to continue raising interest rates. Average hourly earnings rose 2.8% year-over-year as of September 30. Read more

August – September 2018

U.S. Economic and Market Highlights

  • The U.S. GDP grew at a revised 4.2% annualized rate in the second quarter.
  • The unemployment rate remained at 3.9%, in the U.S., slightly above its lowest level since 1969.
  • Average hourly earnings increased 2.9% year over year, a growth rate not seen since 2009.
  • Rising wages could add upward pressure on inflation, which will give the Fed further support to continue raising the Fed Funds rate, which was increased to 2.25% on September 26th. Read more

July – August 2018

U.S. Economic and Market Highlights

  • Revised second quarter U.S. GDP grew at a robust 4.2% annualized pace, the strongest growth rate since 2014.
  • Higher government spending and business investment along with lower corporate tax rates have been main contributors.
  • U.S. consumer confidence reports show that expectations for continued growth are high for the next six months.
  • Better-than-expected second quarter earnings results and strong economic data overshadowed ongoing concerns about the trade conflict with China and, to a lesser extent, the European Union.
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