U.S. Economic News
November 29, 2018
U.S. Economic Indicators
Initial jobless claims rose 10,000 to 234,000 last week. The four-week moving average increased 4,750 to 223,250. DOL Report
The National Association of Realtors pending home sales index eased 2.6% in October (down 6.7% Y/Y), the tenth straight month of annual decreases. NAR points to rising mortgage rates that have reduced the number of eligible buyers, suggesting the Fed should be less aggressive in raising interest rates. NAR Report
Real disposable personal income rose 0.3% in October while real personal consumption expenditures (PCE) increased 0.4%. The PCE price index rose 0.2% (up 2.0% Y/Y) and the core price index edged up 0.1% (up 1.8% Y/Y). BEA Report
U.S. News
Nick Timiraos of the Wall Street Journal reports that Federal Reserve Chairman Jerome Powell stated in a speech yesterday that interest rates are just below the estimated neutral level, the level that neither speeds nor slows the economy. Powell also emphasized the Fed’s plan to continue raising rates gradually, which is an effort to tamp down inflation and financial distortions while also not shortening the current expansion. WSJ
The Wall Street Journal reports that American companies’ overseas profit growth has begun to decelerate due to the slowing global economy. The author also says that domestic profit growth, while currently strong, could also slow if a stronger dollar, rising material and labor costs, and trade uncertainty begin to weigh on U.S. companies at home. WSJ