Publications

Paul Hannon of the Wall Street Journal writes that global inflation in developed economies stalled in January despite expectations of a pickup. As global economic growth accelerates, many market-watchers have expected inflationary pressures to ramp up, though data show that inflation in OECD countries edged down in January, mainly due to weaker inflation in Europe. WSJ

According to the Wall Street Journal, more business income will be subject to state taxes because of changes to the federal corporate tax code. Now that the federal corporate tax rate has been lowered, businesses will have more income subject to state taxes, which may cause states to lower their corporate tax rates, spend the additional revenue, or lower individual tax rates. WSJ

The Wall Street Journal reports that the U.S. will be the world’s largest oil producer by 2023, according to a new forecast from the International Energy Agency. U.S. crude production is expected to exceed 12 million barrels per day in 2023 and will account for nearly 60% of the expected increase in global production between now and then. WSJ

According to the Wall Street Journal, President Trump says that recently-announced tariffs on aluminum and steel will only be lifted if a new NAFTA agreement is reached. Administration officials have said that no country will be exempted from the new tariffs, so the new announcement may further impede progress on NAFTA renegotiations that are already moving slowly. WSJ

The Wall Street Journal reports that the Trump administration has summoned steel and aluminum executives to the White House on short notice, telling them an announcement could be made regarding potential tariffs on imported metals. Some administration officials hope that the President will announce substantial tariffs on steel and aluminum, though others have cautioned that the policies are not fully developed and the meeting today may be a discussion of possible alternatives. WSJ

The Wall Street Journal reports that Federal Reserve Chairman Jerome Powell says that his economic outlook has brightened in recent months. Powell also says that he sees continuing strength in the labor market, that inflation may be showing signs of picking up, and that recent corporate tax cuts will boost consumer spending. WSJ

The Wall Street Journal reports that despite consecutive, sharp, monthly declines in new home sales many economists do not see the U.S. housing market as entering a downturn. Economists say that if the downturn in January was primarily due to economic factors, the decline would have been more broad-based, as opposed to a concentration of losses in the Northeast and the South where winter weather likely kept some prospective buyers out of the market. WSJ