2019-05-07 09:30:00 Tue 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
The Trump team receives a 3.2% first-quarter GDP boost as Fed Chair Jay Powell halts the next interest rate hike in early-May 2019. This smooth upward economic trajectory exceeds most stock market expectations and projections of about 2.5% real GDP growth as of 2019Q1. Moreover, this favorable rebound puts to rest prior pervasive investor fears of an economic recession. This key economic momentum arises without fresh inflationary pressure. As core CPI inflation continues to hover near the 2% target level and the U.S. economy operates with lower unemployment near 3.6%, the Federal Reserve remains patient on the next round of interest rate adjustments after mid-2019.
In the current economic scenario, there is no clear trade-off between inflation and unemployment as the New Keynesian Phillips Curve (NKPC) might indicate. The Phillips curve seems to substantially flatten in recent years, thus the U.S. economy operates near full employment with low inflation. This economic outlook resonates with the Federal Reserve dual mandate of maximum sustainable employment and price stability. Meanwhile, the greenback depreciates a little for U.S. export prices to remain competitive in the global economic landscape. These positive economic events can contribute much to the Trump economic scorecard for his presidential re-election in 2020.
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.
2018-01-19 11:32:00 Friday ET
Most major economies grow with great synchronicity several years after the global financial crisis. These economies experience high stock market valuation,
2018-11-25 12:37:00 Sunday ET
The Chinese administration delivers a written response to U.S. demands for trade reforms. This strategic move helps trigger more formal negotiations between
2019-01-07 18:42:00 Monday ET
Neoliberal public choice continues to spin national taxation and several other forms of government intervention. The key post-crisis consensus focuses on go
2019-07-27 17:37:00 Saturday ET
Capital gravitates toward key profitable mutual funds until the marginal asset return equilibrates near the core stock market benchmark. As Stanford finance
2022-04-25 10:34:00 Monday ET
Corporate ownership governance theory and practice The genesis of modern corporate governance and ownership studies traces back to the seminal work
2025-08-02 13:31:00 Saturday ET
Chip Espinoza, Mick Ukleja, and Craig Rusch shine fresh light on the core competences for managing millennials as part of the new modern workforce in recent