U.S. Economic News
October 18, 2017
U.S. Economic Indicators
Privately-owned housing starts fell 4.7% in September to a seasonally adjusted annual rate of 1.13 million (up 6.1% year-over-year). Housing permits dropped 4.5% to a 1.22 million annual pace in September and are down 4.3% on the year. Census Bureau Report
U.S. News
The Financial Times reports that Treasury Secretary Mnuchin warned Congress that a failure to pass tax reform would cause equity markets to lose a significant share of recent gains. Mnuchin also asserted that equities would rise even higher if Congress managed to pass tax reform, which continues to face significant procedural and political hurdles. FT
Ben Eisen of the Wall Street Journal writes that the global economy is still waiting for inflation to return. Even as economies around the world are beginning to enjoy the effects of the recovery from the recent Great Recession, policymakers are still unsure as to why inflation has not picked up. WSJ
According to the Wall Street Journal, more than a quarter of U.S. states are unprepared to handle the next recession if it were to hit this year. Analysis also shows that only 16 states would have adequate backup money on hand to cover reduced tax revenues and increased demand for services such as Medicaid and other social safety nets. WSJ