Initial claims for unemployment insurance rose to 885,000 for the week ending Dec. 12, an increase from an upwardly revised 862,000 as claims moved above the 13-week moving average. … READ MORE >
Covid-19
FOMC rate decision: Policy on hold as Fed extends asset purchases
The Federal Reserve on Wednesday extended its $120 billion monthly asset purchases through September 2021 to provide sustained accommodation to the economy as it recovers from a deep pandemic-induced recession. … READ MORE >
5 things to know this week in life sciences: Week of Dec. 14
With the Food and Drug Administration approving the first COVID-19 vaccine for emergency use last week, the focus around the vaccine will start to shift toward public health messaging and how to convince tens of millions of people around the country to accept the vaccine and roll up their sleeves for a shot. … READ MORE >
Coronavirus update: Vaccination begins
The mass distribution of a coronavirus vaccine, which we expect to occur by mid-2021, will bolster economic activity in the second half of next year and set the stage for economic recovery and expansion over the next 12 to 24 months. … READ MORE >
CHART OF THE DAY: Holiday sales off to a sluggish start
The holiday shopping season was off to a sluggish start in November as retail sales fell 1.1% compared to October, the Commerce Department reported on Wednesday. It was the biggest drop in seven months and well below analysts’ estimates of a modest gain. … READ MORE >
CHART OF THE DAY: Industrial production continues its recovery
The Federal Reserve on Tuesday said its index of industrial production, a measure of output at factories, mines and utilities, rose last month as output continued to recover from the depths of the economic shutdown this spring. Total production rose 0.4% in November, slightly above the consensus of 0.3% and … … READ MORE >
FOMC preview: Extending guidance as second wave of pandemic peaks
The Federal Open Market Committee this week will almost certainly provide insight into its monetary policy path by extending the weighted average maturity of its Treasury purchases while simultaneously keeping the policy rate effectively at zero. … READ MORE >
CHART OF THE DAY: Vaccine at the top of holiday wish list for senior housing
Senior housing of all kinds – including independent and assisted living facilities, as well as those that offer skilled nursing – have been hit hard by the pandemic, both in human and economic terms. … READ MORE >
Damp wage growth is a Beveridge served cold
The long-term economic scarring of the pandemic — mostly among small businesses in leisure and hospitality, food and beverage, and retail — will dampen wage growth over the next few years. One way to see this dynamic is with the Beveridge curve, which illustrates a downward-sloping relationship between a higher … … READ MORE >
CHART OF THE DAY: Diverging trend in consumer loan delinquencies and unemployment
Consumer loan delinquencies and unemployment rates have historically followed similar paths. But the pandemic has upended that coupling, as consumer loan delinquencies have trended down while unemployment has increased significantly. … READ MORE >