Yellen Says Yield Surge Is Due to Strong Economy, Not Deficits
Viktoria Dendrinou, Christopher Condon, and Margaret Collins Bloomberg October 26, 2023 Treasury Secretary Janet Yellen said the surge in longer-term bond yields in recent months is a reflection of a strong US economy, not the jump in government borrowing driven by a widening fiscal deficit. “I don’t think much of that is connected” to the US budget deficit, Yellen […]
US PREVIEW: Third-Quarter GDP to Blow by Consensus Estimate
Eliza Winger Bloomberg October 25, 2023 A frenzy of summer spending on travel and entertainment drove real GDP growth to an unsustainable pace in the third quarter. A narrowing trade deficit and modest build up of inventories also added to the topline figure. We expect consumption to slow in 4Q given elevated inflation, high interest […]
Wall Street rises as upbeat earnings, forecasts lift sentiment
Shubham Batra and Shashwat Chauhan Reuters October 24, 2023 Wall Street’s main stock indexes advanced on Tuesday as upbeat forecasts from Verizon, Coca-Cola and others boosted optimism about corporate America’s health in the face of a slowing economy and higher inflation. Verizon (VZ.N) surged 9.1% after the U.S. wireless carrier raised its annual free cash flow forecast, […]
The Economy Was Supposed to Slow by Now. Instead It’s Revving Up.
David Harrison The Wall Street Journal October 23, 2023 Earlier this year, economists and Federal Reserve officials predicted that the U.S. economy would be sputtering by now as higher interest rates cut into spending and investment. The opposite is happening. Recent economic data suggest the economy is accelerating despite higher borrowing costs, the resumption of […]
US Retail Sales Top Forecasts in Sign of Durable Consumer Demand
Augusta Saraiva Bloomberg October 17, 2023 Increase in household purchases spans variety of categories Data bolster already-robust economic growth in third quarter US retail sales increased in September by more than forecast in a broad advance that suggests durable household demand as the third quarter drew to a close. The value of retail purchases, unadjusted for […]
A Recession Is No Longer the Consensus
In WSJ survey, economists lower recession probability below 50% and say Fed is finished raising interest rates Harriet Torry and Anthony DeBarros The Wall Street Journal October 15, 2023 Economists are turning optimistic on the U.S. economy. They now think it will skirt a recession, the Federal Reserve is done raising interest rates and inflation will continue […]
Rising Rates Make Big Companies Even Richer
James Mackintosh The Wall Street Journal September 15, 2023 The amount companies earn from cash in the bank is going up even as interest costs fixed during the pandemic stand still. The Federal Reserve jacked up interest rates to slow the red-hot economy. At some of the biggest and most secure companies, the moves had the opposite […]
US services sector picked up in August, along with prices
Ann Saphir Reuters September 6, 2023 The U.S. services sector unexpectedly gained steam in August, with new orders firming and businesses paying higher prices for inputs — potential signs of still-elevated inflation pressures. The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing PMI rose to 54.5 last month, the highest reading since February […]
Fed Officials Set to Double Growth Forecast Amid Strong Data (1)
Steve Matthews Bloomberg September 6, 2023 Resilience may lead to fewer rate cuts penciled in for 2024 Separate tracker from Atlanta Fed is at 5.6% for third quarter The US economy has been looking so solid lately that Federal Reserve officials will probably need to double their projection for growth in 2023 when they publish […]
U.S. dollar defies China, Russia and Wall Street skeptics as 2023 rebound continues
Joseph Adinolfi MarketWatch August 28, 2023 A popular gauge of the dollar’s value is nearing its highest level in 6 months The U.S. dollar is proving its haters wrong. Not only is the buck defying the expectations of Wall Street strategists who had anticipated that it would weaken this year, it’s also proving once again […]