U.S. Economic News
April 30, 2018
U.S. Economic Indicators
Real disposable personal income rose 0.2% in March while real personal consumption expenditures (PCE) increased 0.4%. The PCE price index was flat (up 2.0% Y/Y) and the core price index rose 0.2% (up 1.9% Y/Y). BEA Report
The National Association of Realtors pending home sales index inched up 0.4% in March (down 3.0% Y/Y). NAR says that the contract activity has been mostly flat in early 2018 due to significant lack of inventory. NAR Report
U.S. News
The Wall Street Journal reports that manufacturers are rushing to stock up on aluminum and steel. Some manufacturers report paying 35% premiums for stainless steel due to recent tariffs, and many market-watchers expect the price pressures to increase when exemptions for key trading partners expire this week. WSJ
According to Nick Timiraos of the Wall Street Journal, now that inflation is finally moving closer to 2% the Fed may have to raise rates more quickly than anticipated. Some investors say that the Fed may allow inflation to move slightly above 2% before accelerating their rate hikes, which would be consistent with current Fed projections. WSJ