U.S. Economic News
July 20, 2017
U.S. Economic Indicators
Initial jobless claims fell 15,000 to 233,000 last week. The four-week moving average declined 2,250 to 243,750. DOL Report
The Philadelphia Fed’s
U.S. News
According to the New York Times, the White House is taking a more pragmatic approach to corporate tax reform now that efforts to repeal and replace the Affordable Care Act are nearly dead. In April, the White House proposed a 15 percent tax rate for corporations and small businesses, but is now considering a rate in the low 20 percent range — more consistent with the tax blueprint released by House Speaker Paul Ryan last year. NY Times
The Wall Street Journal reports that for the first time since late 2010, the lowest-earning Americans are experiencing the fastest annual growth in weekly pay. The authors attribute this to a broad tightening of the labor market, increased demand for workers in specific fields such as dining and entertainment, and (to a lesser extent) rising minimum wages in many states and cities. WSJ
According to the Wall Street Journal, the Federal Reserve is unlikely to raise short-term interest rates at its policy meeting next week. A 4.4% unemployment rate would typically encourage the Fed to lift rates in order to prevent the economy from overheating; however, inflationary weakness appears more persistent than before, which may lead the Fed to keep borrowing costs low in order to strengthen price pressures. WSJ