Fear of increasing inflation in the U.S. appear to be the trigger behind the market volatility of previous weeks. Recent gains in hourly compensation to workers have had analysts measuring the effect of wages on inflation. In turn, analysts began pondering changes in Fed's monetary policy due to the apparent overheating path of the economy; … Continue reading Rent Prices Stickiness and the Latest CPI Data.
The stock market keeps on sending signals of correction as the Dow Jones struggle to rebound from Monday’s 5th of February sell-off. Economic analysts began early in the week to point out to fear of high inflation due to an upward trend in workers compensation. News reports were mostly based on strong beliefs and arguments … Continue reading The Missing Part of the Dow Jones and Stock Market Sell-off Analysis.
On February 5th, 2018, Dow Jones index fell 1,175 points after the trading day. Four economic scenarios are being analyzed in the news as of the first week of February 2018. First, there are indeed both Stock Market and bonds Bubbles. Second, the Monday Dow’s selloff is just an anticipated correction move on the investor's … Continue reading Recent Narratives of Stock and Bond Bubbles.
The US economy added 228,000 new jobs in November of 2017 and analysts rush to assess the state of the economy as “STRONG.” Although the job reports are indeed good indicators of the performance of the US economy, one should not simplify the job report as the snapshot of the economy that allows for those … Continue reading The overuse of the word “Strong” in economic news.
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The series of documents published by the White House Council of Economic Advisers indicate that President Donald Trump’s Tax Reform will end up being his economic growth policy. The most persuasive pitch behind the corporate tax cut is that lowering taxes to corporations will foster economic investment thereby economic growth. Further, the political rhetoric refers … Continue reading Raising economic expectations with the “after-tax” reckon: President Trump’s corporate tax cut plan.
Economists and policy analysts continue to wonder what is going on in the U.S. economy currently. Most of the uncertainty stems from both the anemic pace of economic growth as well as from fears of a new recession. In regards to economic growth, analysts point out to sluggish changes in productivity, while fears of new … Continue reading The Current Need for Mixed Methods in Economics.
One month of weak payroll data does not make a crisis. The US economy appears to have added only 160,000 new jobs during the month of April in 2016, the Bureau of Labor Statistics reported on Friday. A similar number was published earlier in that week by the payroll firm ADP. Although the slowdown in … Continue reading U.S. economic slowdown? Look at Real Estate labor market.
When it comes to loan rates, the one that concerns the most regular consumers is the mortgage loan interest rate. This past February 2016 a 30-year mortgage interest rate averaged 3.66 percent accordingly to Freddie Mac, whereas the homeownership stubbornly kept its 63 percent level. So, with the mortgage interest rates averaging 3.53 percent (15-year … Continue reading Why Is the Homeownership Rate Still Falling? An alternative explanation.
The currency seems to have a negative effect... There are two sides to every story, even for US-China foreign trade. Ever since China emerged to the world economy as a major manufacturing powerhouse, United States started to lose jobs in the manufacturing sector. Once upon the time firms of manufactured goods such as shoes, clothes … Continue reading US-China trade: There are two sides to every story.