2018-07-11 09:39:00 Wed ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
In recent times, the Trump administration sees the sweet state of U.S. economic expansion as of early-July 2018. The latest CNBC All-America Economic Survey indicates 54% majority approval of the Trump team's supply-side economic reform. At least for 2018Q2, U.S. economic output grows at a hefty rate of 4% year-to-year. Non-farm payrolls add 213,000 full-time jobs in June 2018. Further, the U.S. trade deficit shrinks by 6.6% to $43 billion or the lowest level in 19 months.
U.S. average wages growth increases to 2.7%, whereas, CPI inflation remains as low as 2% that the Federal Reserve targets in order to maintain the current neutral interest rate hike. Unemployment is as low as 4% per annum, and most other top-line U.S. economic statistics land in reasonable ranges near full employment, the latter of which is part of the Federal Reserve's dual mandate. In light of this recent evidence, the Federal Reserve seems able to trade off maximum employment with moderate inflationary momentum.
President Trump deserves a lion's share of credit for this sweet state of economic affairs in America. The mid-term election stirs positive animal spirits and investor sentiments. The recent rollback of Dodd-Frank bank regulations boosts financial intermediary capital for better profitability, M&A momentum, and key balance sheet strength. Trump tax cuts breed corporate efficiency, capital investment growth, and both dividend payout and share buyback. These positive economic affairs trickle down to benefit shareholders, small-to-medium enterprises, and investment firms. Whether these economic affairs can sustain the current sweet state remains open to healthy debate due to bitter social polarization and rampant economic inequality.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-03-06 11:35:00 Tuesday ET

The Trump team blocks Broadcom's bid for Qualcomm due to national economic security concerns and 5G telecom network issues. Broadcom makes microchips fo
2019-04-21 10:07:54 Sunday ET

Central bank independence remains important for core inflation containment in the current age of political populism. In accordance with the dual mandate of
2018-11-30 12:42:00 Friday ET

Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube November 2018 AYA Analytica is our online regular podcast and news
2017-11-23 10:42:00 Thursday ET

As the TV host of Mad Money, Jim Cramer provides 5 key reasons against the purchase and use of cryptocurrencies such as Bitcoin. First, no one knows the ano
2019-10-19 16:35:00 Saturday ET

European economic integration seems to have gone backwards primarily due to the recent Brexit movement. Brexit, key European sovereign debt, and French and
2017-03-21 09:37:00 Tuesday ET

Trump and Xi meet in the most important summit on earth this year. Trump has promised to retaliate against China's currency misalignment, steel trade