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.
2018-09-30 14:34:00 Sunday ET
Goldman, JPMorgan, Bank of America, Credit Suisse, Morgan Stanley, and UBS face an antitrust lawsuit. In this lawsuit, a U.S. judge alleges the illegal cons
2019-09-15 14:35:00 Sunday ET
U.S. Treasury officially designates China a key currency manipulator in the broader context of Sino-American trade dispute resolution. The U.S. Treasury cla
2018-09-25 10:35:00 Tuesday ET
Sirius XM pays $3.5 billion shares to acquire the music app company Pandora. This acquisition would form the largest audio entertainment company worldwide.
2023-04-14 13:32:00 Friday ET
Calomiris and Haber delve into the comparative analysis of bank crises and politics in America, Britain, Canada, Mexico, and Brazil. Charles Calomiris an
2025-01-31 09:26:00 Friday ET
The current homeland industrial policy stance worldwide seeks to embed the new notion of global resilience into economic statecraft. In the broader cont
2020-01-01 13:39:00 Wednesday ET
President Trump approves a phase one trade agreement with China. This approval averts the introduction of new tariffs on Chinese imports. In return, China s