U.S. Economic News
August 14, 2018
U.S. Economic Indicators
The NFIB Small Business Optimism Index edged up 0.7 point to 107.9 in July and remains near all-time highs, as six of the components rose, two fell, and two remained unchanged. The share of small business owners who are planning to hire in the next few months rose to an all-time high. NFIB Report
U.S. News
According to the Wall Street Journal, new research from the New York Fed finds that higher tariffs on imported goods are unlikely to affect the U.S. trade deficit because domestic businesses will face higher input costs. The researchers find that U.S. producers will be adversely affected by tariffs even before trading partners impose retaliatory measures, which will only worsen the input-cost effects. WSJ
Mike Bird of the Wall Street Journal writes that sharp declines in the Turkish lira and Indian rupee have risen the specter of emerging-market contagion. Bird points out that cross-border dollar-denominated loans to emerging markets total nearly $2.5 trillion, roughly double the level from a decade ago and a sign that emerging markets may be unable to service outstanding debt if investors continue to withdraw funds. WSJ