U.S. Economic News
February 25, 2019
U.S. Economic Indicators
The Chicago Fed National Activity Index fell from +0.05 (revised) in December to -0.43 in January. The employment and sales, orders, and inventories categories contributed positively, while the production and the personal consumption and housing categories contributed negatively. Chicago Fed Report
The U.S. Census Bureau reports that wholesale merchant inventories edged up 1.1% in December to $661.8 billion. Inventories were up 7.3% year-over-year. Census Report
U.S. News
The Wall Street Journal reports that President Trump stated he would delay an increase in tariffs of 25% on $200 billion of Chinese goods set to take effect at the end of this week, citing progress on issues such as intellectual property and technology transfer. In recent talks, Beijing offered to increase purchases of U.S. farm and energy products and services, ease restrictions on U.S. firms, and improve protection of U.S. intellectual property rights. WSJ
Nick Timiraos of the Wall Street Journal reports that top Federal Reserve officials said Friday the central bank could stop reducing its Treasury holdings from its $4 trillion balance portfolio in the latter half of the year before maintaining its holdings for some time. Determining the end of the balance sheet run-off depends in part on how low reserves can fall before putting upward pressures on the Federal Funds Rate. WSJ