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 26^th. Read more →

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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Higher inflation was anticipated in the second quarter, but the threat of tariffs and trade wars kept it from accelerating. Core CPI remained steady at 2.2% for the trailing 12 months and headline CPI increased 2.8% with energy prices having risen 11.7% during that time.
The trade tariffs created uncertainty and drove investors toward safe-haven investments, primarily fixed income (government and investment grade bonds), which kept the long-term Treasury interest rates from rising. Read more →