U.S. Economic News
November 27, 2017
U.S. Economic Indicators
New home sales jumped 6.2% to a seasonally adjusted annual pace of 685,000 in October, and are 18.7% above the October 2016 rate. The median sales price rose to $312,800 and the inventory of new homes fell to 4.9 months at the current sales rate. Census Bureau Report
U.S. News
Christina Rexrode of The Wall Street Journal writes that despite recent, robust economic activity, lending to U.S. businesses has been decelerating steadily. Continued weakness in business lending has surprised many market-watchers, who say that a brightening economy, tight labor market, and accelerating business investment should all drive businesses to borrow more. WSJ
The Wall Street Journal reports that the current Republican tax plan may make it more difficult for cities and states to refinance outstanding debt. The current tax plan is likely to eliminate exemptions for so-called advanced refunding bonds, which allow governments to refinance existing debt earlier to take advantage of low interest rates. WSJ
According to The Wall Street Journal, Federal Reserve governor Jerome Powell is expected to face little opposition during his confirmation hearing this week. While Fed officials in the past have been questioned extensively about efforts to stimulate the American economy and prop up the financial system after the recent crisis, Powell has enjoyed bipartisan support that is likely to ensure a smooth confirmation process. WSJ