Economic Commentary provides a take on the most recent U.S. economic events, indicator releases, and policy developments. These events are put into context of our projections and market views to see the practical implications of the economic moves.
In this edition, we address the headlines and underlying concerns behind last week’s correction.
The term “new normal” was coined during the rubble of the 2008-2009 great financial crisis to imply that normal business cycles were a thing of the past. Today, the business cycle is back in full force and “new normal” is a thing of the past.
The House of Representatives and Senate passed their separate versions of the tax reform bill in November and December, respectively. Subsequently, the two houses of Congress sorted out their differences and reached a conference agreement on the final version of the Tax Cuts and Jobs Act and passed the conference agreement bill.
Wednesday’s status quo Federal Open Market Committee (FOMC) meeting was overshadowed by Thursday’s anticipated nomination of a new Fed chair. On Thursday afternoon President Trump nominated Jerome (Jay) Powell to lead the Federal Reserve beginning in 2018.
November 2017 | The House and Senate have delivered their respective tax plans with edits occurring in real time. Their paths may differ but their goals of progrowth economic stimulus are aligned.
October 2017 | The two primary levers of economic policy find themselves at an inflection point. The Fed is cooling their ultra-accommodative monetary policy while Washington is turning up the heat on economic growth through potential tax reform.