Publications

The Financial Times reports that the possibility of U.S. tariffs on steel and aluminum imports provided stock market boosts to some of Europe’s largest steel producers. The Commerce Department on Friday recommended substantial tariffs on imports of steel and aluminum, which would normally be unwelcome to foreign firms, though many European metals producers have operations in the U.S. that would stand to benefit from protectionist policies. FT

According to the Wall Street Journal, while tariffs on imported solar panels may slow the expansion of solar capacity, government mandates requiring the use of renewable energy will likely mean that solar capacity should keep expanding. The cost of solar panels has continued to decline as storage technology has improved and firms have been stockpiling panels in advance of the tariffs, meaning that they will likely be able to comply with government mandates to build new solar installations. WSJ

The Wall Street Journal reports that National Economic Council Director Gary Cohn does not believe that recent tax cuts and other fiscal stimuli would cause inflation to accelerate and overheat the economy. Cohn also said that the U.S. knows how to deal with inflation, which could be spurred by increasing deficits, but does not know how to deal with deflation. WSJ

According to the Wall Street Journal, a new report from the Brookings Institution shows that many borrowers who take out so-called “jumbo” student loans of more than $50,000 fail to repay their debt. As of 2014 there were roughly 5 million borrowers with “jumbo” loan balances that represent 58% of all U.S. student debt, which could become problematic as interest rates rise and it becomes more difficult to refinance existing debt. WSJ

The NAHB Housing Market Index held steady at 72.0 in February, hovering near record highs.  The outlook for the next six months remains solid, though builders still face increasing materials prices and shortages of labor.  NAHB Report
 
Industrial production edged down 0.1% in January (up 3.7% Y/Y), after increasing 0.4% (revised) in December.  Capacity utilization fell 0.2 point to 77.5 in January.  Fed Report
 
Initial jobless claims rose 7,000 to 230,000 last week. The four-week moving average increased 3,500 to 228,500.  DOL Report
                                                                                                             
The headline Producer Price Index (“PPI”) for final demand rose 0.4% in January and is up 2.7% since January of last year.  The core — which removes the volatile prices of food, energy, and trade services — also increased 0.4% and is up 2.5% on the year.  BLS Report

The Wall Street Journal reports that the White House is considering Cleveland Fed President Loretta Mester for the vice chairwoman of the Federal Reserve Board. Mester, who has led the Cleveland Fed since 2014, is considered to be moderately hawkish and would likely support raising interest rates more quickly in order to quash inflationary pressures in the economy. WSJ

The Wall Street Journal reports that President Trump said Monday that he is planning a “reciprocal tax” on trade partners who are taking advantage of the U.S. The President did not include any other specifics of the proposed tax, though he did say that some of the U.S.’ allies may be subject to the tax. WSJ

According to the Wall Street Journal, a new report from the Federal Reserve Bank of New York shows that household debt rose by $193 billion to a total of $13.15 trillion in the fourth quarter of 2017. While total nominal debt hit an all-time high, it represents just 67% of GDP, well below the previous high of 87% seen in 2009. WSJ