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.
2019-09-30 07:33:00 Monday ET

AYA Analytica finbuzz podcast channel on YouTube September 2019 In this podcast, we discuss several topical issues as of September 2019: (1) Former
2021-11-22 11:29:00 Monday ET

U.S. judiciary subcommittee delves into the market dominance of online platforms in terms of the antitrust, commercial, and administrative law in America.
2017-12-03 08:37:00 Sunday ET

Sean Parker, Napster founder and a former investor in Facebook, has become a "conscientious objector" on Facebook. Parker says Facebook explo
2022-11-15 10:30:00 Tuesday ET

Stock market misvaluation and corporate investment payout The behavioral catering theory suggests that stock market misvaluation can have a first-order
2018-09-07 07:33:00 Friday ET

The Economist re-evaluates the realistic scenario that the world has learned few lessons of the global financial crisis from 2008 to 2009 over the past deca
2020-09-15 08:38:00 Tuesday ET

Macro eigenvalue volatility helps predict some recent episodes of high economic policy uncertainty, recession risk, or rare events such as the recent rampan