U.S. Economic News
July 27, 2018
U.S. Economic Indicators
The first estimate of Q2 GDP indicates that the U.S. economy expanded at an annualized rate of 4.1%, mostly in line with the consensus estimate of 4.2%. The reading reflects robust consumer spending, business investment, net exports, and government spending. BEA Report
The University of Michigan Consumer Sentiment Index edged down 0.3 point to 97.9 in the final July reading, but is up 4.5 points on the year. The Index of Consumer Expectations rose 1.0 point to 87.3, while the Current Economic Conditions Index dropped 2.1 points to 114.4. Report
U.S. News
Former Council of Economic Advisers Chair Martin Feldstein writes in a Wall Street Journal op-ed that the Federal Reserve should be raising interest rates even if inflation isn’t accelerating sharply. Feldstein contends that the Fed needs to leave itself room to cut interest rates in the event of an economic downturn, which he believes could be caused by a sharp drop in asset prices, prices that have been inflated by near-zero interest rates. WSJ