U.S. Economic News
July 26, 2019
U.S. Economic Indicators
The advance estimate of Q2 GDP indicates that the U.S. economy expanded at an annualized rate of 2.1%, down from 3.1% in the first quarter. The reading reflects positive contributions from consumer and government spending, offset by negative contributions from private inventories, exports, and nonresidential & residential investment. BEA Report
U.S. News
The Wall Street Journal reports that state and local pensions have less than 73% of the assets needed to fund future obligations to public workers, according to a recent survey. A potential side-effect of such a shortfall is increased risk-taking by funds to fulfill their obligations to beneficiaries. WSJ
Tom Fairless reports for the Wall Street Journal that the European Central Bank has signaled it is preparing to reduce short-term rates and restart a bond-buying program as it seeks to insulate the eurozone from headwinds such as trade tensions and Brexit. The ECB’s willingness to ease monetary policy puts pressure on the Fed to follow suit and cut rates in July for the first time in over a decade. WSJ