U.S. Economic News
October 23, 2017
U.S. Economic Indicators
The Chicago Fed National Activity Index rose from -0.37 (revised) in August to +0.17 in September. The production, sales, and employment components made positive contributions while the personal consumption & housing component contributed negatively. Chicago Fed Report
U.S. News
The Wall Street Journal reports that the federal budget deficit widened to $666 billion dollars in fiscal year 2017, the sixth largest deficit on record. The federal deficit, which rose 14% from a year ago, is expected to worsen due to the combined effects of an aging population and declining government revenues. WSJ
According to the Wall Street Journal, President Trump says that there will be no changes to 401(k) plans under the Republican tax reform plan. Congressional Republicans had previously considered limiting the amount of tax-free contributions that could be made to a 401(k) plan as a way to generate more revenue to offset tax cuts. WSJ
Sam Fleming of the Financial Times writes that Federal Reserve Chair Janet Yellen says that the Fed may have to turn to quantitative easing in the event of another recession. The comments come as President Trump considers his pick for the next Fed Chair, though the White House has signaled that Yellen is still in the running to retain her position. FT