Manufacturers in September reported the fastest improvement in operating conditions since January 2019, according to the U.S. manufacturing purchasing managers’ index released by IHS Markit on Wednesday. … READ MORE >
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CHART OF THE DAY: As housing market heats up, inventory shrivels
Existing home sales in August topped 6 million for the first time since 2006 as big-city renters continued to flock to the suburbs for more space, including a home office and a yard to accommodate their new normal. … READ MORE >
In the long run, U.S. needs a productivity miracle
The Congressional Budget Office recently published its long-term budget outlook for 2020. Beneath the outlook’s headline of rising debt-to-GDP ratios are significant policy challenges facing the U.S. economy. … READ MORE >
CHART OF THE DAY: Resurgence of pandemic in the U.K.
The sharp sell-off across financial markets on Monday is linked to fears about a global resurgence of the pandemic. Nowhere is that more evident than in the U.K. … READ MORE >
CHART OF THE DAY: Consumer sentiment continues its climb back
The index of U.S. consumer sentiment index continued to climb back from the depths of the economic shutdown in April, the University of Michigan reported Friday. … READ MORE >
Tracking the spread of COVID-19: A resurgent virus, and a grim milestone
Following a late-summer lull in the coronavirus pandemic, the rate of infections has resumed its increase in the United States and is poised to intensify in the coming weeks, RSM’s modeling shows. … READ MORE >
CHART OF THE DAY: Housing starts decline 5.1%
Housing starts declined 5.1% month over month in August, while forward-looking building permits held steady with a slight decline of .9%, the Commerce Department reported on Thursday. … READ MORE >
Initial jobless claims remain elevated at 860,000
The pace of firings in the economy remains well above anything observed during the Great Financial Crisis as 860,000 workers filed for first-time jobless claims for the week ending Sept. 12, a reflection of the deep scarring in the domestic labor market and economy. … READ MORE >
Monetary policy and inflation in the modern era
By adopting a flexible average inflation target, the Fed is using its most important tool — forward guidance – to infuse confidence in investors and the general public that it will do all it can to sustain the economic recovery needed in the wake of the coronavirus. … READ MORE >
FOMC comment: Fed follows through on its policy shift
Combined with the forward-looking interest rate forecast included in the Fed’s Summary of Economic Projections, the FOMC’s statement shows that we are looking at five years at the least of rates remaining pinned to the zero boundary, if not far longer. … READ MORE >