U.S. Economic News
August 16, 2017
U.S. Economic Indicators
Privately-owned housing starts fell 4.8% in July to a seasonally adjusted annual rate of 1.16 million (down 5.6% year-over-year). Housing permits dropped 4.1% to a 1.22 million annual pace in July but are up 4.1% on the year. Census Bureau Report
U.S. News
According to the Wall Street Journal, the first topic being debated in the North American Free Trade Agreement (“NAFTA”) renegotiation is the process for settling trade disputes. Canada and Mexico have advocated for retaining the current process in which disputes are submitted to panels of experts who have the authority to overturn tariffs, while the U.S. wishes to eliminate these expert panels. WSJ
The Wall Street Journal reports that despite recent, robust consumer spending, U.S. households are taking on more debt and saving less. Higher debt levels and lower savings rates both could become problematic in the event of an economic downturn or a spike in interest rates, which in turn could weaken retail sales significantly. WSJ
According to the Financial Times, Federal Reserve Board Vice-Chairman Stanley Fischer says that recent efforts to reduce banking regulations are “dangerous and extremely short sighted.” Fischer also stated that while he believes burdensome regulations on small banks should be eased, the new rules governing large institutions should be left in place. FT
Danielle Paquette of the Washington Post writes that despite efforts to bring manufacturing jobs back to the United States, factory workers are quitting their jobs at the highest rate in a decade. Some of the quits are due to retirement and fears of automation, but many are leaving with hopes for better employment elsewhere sparked by the low national unemployment rate. WaPo