U.S. Economic News
March 27, 2019
U.S. Economic Indicators
The U.S. trade deficit decreased from $59.9 billion in December (revised) to $51.1 billion in January. The goods deficit fell $8.2 billion while the services surplus increased $0.5 billion. Census Bureau Report
U.S. News
Nick Timiraos of the Wall Street Journal reports that some Federal Reserve officials say it is too soon to consider cutting U.S. interest rates despite slowing global growth. Given the recent yield curve inversion, investors believe the Fed is finished raising rates and increasingly expect officials to lower them. WSJ
The Wall Street Journal reports that European Central Bank President Mario Draghi has signaled concern about the adverse effects of negative interest rates, a controversial policy tool that reduces borrowing costs and weakens an economy’s exchange rate. Negative interest rates are being implemented across Europe, including in Sweden, Switzerland, and Denmark, as central banks seek to spur economic activity amid a decelerating global economy. WSJ
According to the Financial Times, growth in U.S. home prices cooled in January following a lackluster 2018 as unaffordable homes keep some would-be buyers on the sidelines. Rising mortgage rates, elevated property values, and limited property listings discouraged prospective buyers, while home builders felt pressure from high commodity prices and labor shortages. FT