Given the high volume of mergers and acquisitions in life sciences, changes in the leadership and focus of the Federal Trade Commission will be closely watched in the coming months as scrutiny could shift to the technology industry. We examine the possible impact below. We also look at CureVac’s COVID-19 vaccine trial results, how events at a plant in New ... READ MORE >
Covid-19
FOMC comment: Fed creates context to end pandemic policy efforts
The Federal Reserve on Wednesday took another step in the long road to policy normalization in the post-pandemic economy. At the monthly meeting of the Federal Open Market Committee, the central bank kept its policy rate unchanged in a range between 0 and 25 basis points. But it is clear that given the accelerating economy, a forecast of higher inflation ... READ MORE >
CHART OF THE DAY: Housing market stays steady despite headwinds
The housing market in the United States remained resilient in May as developers continued to grapple with higher costs amid a shortage of supply. Housing starts rose 3.6% to 1.57 million while permits dipped 3% to 1.68 million, according to Commerce Department data released on Wednesday. While off the peaks from earlier this year, both figures are above ... READ MORE >
CHART OF THE DAY: Retail sales cool as stimulus boost wears off
After two months of growth fueled in part by stimulus payments, retail sales cooled off in May, falling 1.3% and missing analyst estimates compiled by Bloomberg of a 0.8% gain, according to Commerce Department data released Tuesday. But the drop in sales is likely more noise than signal as the economy ramps up. The three-month annualized pace of retail ... READ MORE >
FOMC preview: Growth and inflation and tapering, oh my!
The Federal Open Market Committee will leave its policy rate unchanged at its meeting this week, but that decision will mask an underlying shift in its economic projections and policies. Consider three areas where this shift is occurring: The dot plot, which shows committee members’ projections for the federal funds rate, will most likely pull forward ... READ MORE >
CHART OF THE DAY: U.S. household net worth surges, but the gains are uneven
The financial condition of U.S. households continued to improve in the first quarter, according to recent data released by the Federal Reserve. The net worth of households increased by nearly $5 trillion, or 3.8%, from the previous quarter to a record of $136.9 trillion, according to the data. On a year-ago basis, U.S. household net worth increased by $25.5 ... READ MORE >
What’s behind the recent decline in 10-year Treasury yields
The yield on 10-year Treasury bonds has dropped nearly 25 basis points to below 1.5%, touching 1.42% overnight on June 11 from its recent peak of 1.74% on March 31. If the initial move up to 1.74% can be rationalized as a response to the risks around higher growth and inflation, then this recent move below 1.5% in the midst of an economic recovery ... READ MORE >
CHART OF THE DAY: Initial jobless claims continue downward trend
Initial jobless claims continued to decelerate for the sixth straight week as the labor market slowly normalizes, according to government data released Thursday. State employment agencies reported 376,000 new claims for unemployment insurance for the week ending June 5, down from 800,000 claims per week earlier in the year. As claims decline, more ... READ MORE >
May CPI: Prices surge on strong base effects and economic reopening
Prices continue to rise as demand outstrips supply across a robust economic reopening in the United States. Supply chain constraints and bottlenecks are still disrupting the flow of inputs used at earlier stages of production and intermediate goods. These disruptions underscore the imbalance between supply and demand that, in addition to comparisons ... READ MORE >
RSM Canada Financial Conditions Index: Accommodation to continue while economy recovers
The Bank of Canada on Wednesday reiterated its intention to maintain an accommodative monetary policy stance as the economy continues to recover and as financial conditions remain one standard deviation above neutral. As it has for the past 16 months, the central bank is keeping its policy rate at near zero to maintain liquidity in the commercial markets, ... READ MORE >