U.S. Economic News
August 25, 2017
U.S. Economic Indicators
New orders of manufactured durable goods dropped 6.8% in July after increasing 6.4% in June (revised), but are up 5.0% year-over-year. Excluding transportation, new orders rose 0.5% (up 5.3% Y/Y). Census Bureau Report
U.S. News
According to the Financial Times, national economic council head Gary Cohn affirmed that President Trump’s agenda in the coming weeks will revolve around pitching tax reform to the American people. Though the administration would like to see tax reform enacted in 2017, few expect that it will happen given that congressional leaders and the White House have not yet settled on a plan. FT
The Financial Times reports that Robert Kaplan, president of the Federal Reserve Bank of Dallas, advises against watering down stress tests for large American banks. Kaplan says that deregulating banks at a time of soaring asset valuations could encourage risk-taking and unsustainable debt levels. FT
The Wall Street Journal writes that financial markets have begun signaling growing concerns about a possible U.S. government debt default. Yields on Treasury bills maturing shortly after the end of the debt-limit deadline have climbed above yields for longer-dated Treasuries, suggesting concerns that investors may not be paid on time if Congress fails to raise the debt ceiling. WSJ