U.S. Economic News

January 11, 2019

U.S. Economic Indicators

Consumer prices declined 0.1% in December (up 1.9% on the year).  The “core” CPI, which excludes food and energy, increased 0.2% in November and is up 2.2% on the year.  BLS Report

U.S. News

Nick Timiraos of the Wall Street Journal reports that internal discussions at the Fed are heating up over the make-up of the central bank’s balance sheet when it is done shrinking those holdings. The talks suggest the Fed is considering a larger portfolio than previously thought and may be weighted toward short-term Treasury securities. WSJ

The Wall Street Journal reports that economists they surveyed see a growing risk of recession in the U.S., though few identified a specific trigger. Many economists that were surveyed view China trade tensions and rising interest rates as potential triggers, while others pointed to U.S. exposure to slowdowns in other major economies like China, Europe, and Japan. WSJ