U.S. Economic News

May 25, 2018

U.S. Economic Indicators

New orders of manufactured durable goods fell 1.7% in April after rising 2.7% (revised) in March, but are up 9.6% year-over-year. Excluding transportation, new orders edged up 0.9% (up 7.9% Y/Y).  Census Bureau Report

The University of Michigan Consumer Sentiment Index edged down 0.8 point to 98.0 in the final May reading, but is up 0.9 point on the year. The Index of Consumer Expectations rose 0.7 point to 89.1, while the Current Economic Conditions Index fell 3.1 points to 111.8. Report

U.S. News

The Wall Street Journal reports that the Congressional Budget Office (CBO) forecasts a federal budget deficit $2.3 trillion larger than the White House’s estimate for the coming decade. Compared to the White House’s budget estimate for the next ten years, the CBO projects that the government will bring in $1.9 trillion less in revenue and spend $300 billion more, reflecting different expectations of how the economy will perform. WSJ

According to the Wall Street Journal, Federal Reserve Chairman Jerome Powell said that an erosion of public trust in institutions following the Great Recession could threaten the independence of central bankers. Powell advocated for greater transparency from policy-makers as a way to boost public trust, pointing to the Fed’s recent efforts to increase disclosures about big-bank stress tests as an example. WSJ