U.S. Economic News

U.S. Economic News

November 8, 2017

U.S. News

The Wall Street Journal reports that Senate Republicans aim to preserve the tax deduction for household medical expenses, a deduction the House tax bill would eliminate. Senate Republicans are also considering delaying the start of the corporate tax rate cut but have yet to agree on any specifics. WSJ

Eric Morath of the Wall Street Journal writes that national demand for construction workers remains subdued despite the destruction caused by recent hurricanes. Morath points to a decline in construction job openings in September as recent evidence of soft labor demand, though home building has remained weak throughout the recovery from the Great Recession. WSJ

The Financial Times argues that debt and equity should be taxed in the same way under the Republican tax reform bill. The FT writes that under current law, interest on debt is tax deductible, thereby giving companies an incentive to finance themselves with debt rather than equity and creating instability in financial markets. FT

U.S. Economic News

U.S. Economic News

November 7, 2017

U.S. News

The Job Openings and Labor Turnover Survey (“JOLTS”), a closely-watched measure of labor market health, indicated there were 6.1 million job openings at the end of September, little changed from August.  Hires edged down to 5.3 million and the quits rate inched up to 2.2%.  BLS Report

The Washington Post reports that House Republicans have made modest changes to their tax bill but will not include a repeal of the Affordable Care Act’s “individual mandate.” The changes do include tweaks to the tax treatment of university endowments and cross-border transactions by multinational corporations, among other things. WaPo

According to the Wall Street Journal, rising homeownership among millennials is contributing to the slump in home rental markets. As millennials increasingly decide to buy homes rather than rent them, a surge in supply of rental units after the recent recession has weakened rental prices. WSJ

U.S. Economic News

U.S. Economic News

November 6, 2017

U.S. News

The Wall Street Journal reports that New York Federal Reserve Bank President William Dudley will retire in 2018, about six months earlier than scheduled. The NY Fed President serves as the vice-chair of the Federal Open Market Committee, so any replacement nominated by President Trump will be poised to exert significant influence over the rate-setting activities of the Fed. WSJ

In a Wall Street Journal op-ed former Chairman of the Council of Economic Advisers Martin Feldstein argues that corporate tax reform is the most crucial part of the current tax reform effort. Feldstein contends that the U.S. capital stock could rise by $5 trillion within a decade, thereby boosting incomes across the board and offsetting any negative effects associated with an expanded federal deficit. WSJ

Eric Morath of The Wall Street Journal writes that retail jobs openings have climbed to nearly the highest level on record as the holiday season approaches. Morath reports that retailers have begun hiring out of training programs designed to retrain workers from other industries, a sign that a multi-decade low unemployment rate has translated into increasingly scarce workers. WSJ

U.S. Economic News

U.S. Economic News

November 3, 2017

U.S. Economic Indicators

The ISM Non-Manufacturing Index rose 0.3 percentage point to 60.1 in October.  The new orders index edged down 0.2 percentage point to 62.8 while the employment index improved 0.7 percentage point to 57.5. ISM Report

The U.S. economy added 261,000 jobs in October, below consensus.  The unemployment rate fell to 4.1%, the labor force participation rate dropped to 62.7%, and average hourly earnings decelerated to 2.4% Y/Y.  BLS Report

New factory orders for manufactured goods rose 1.4% in September following a 1.2% increase in August, and are up 5.6% on the year. New orders excluding transportation rose 0.7% while new orders for nondefense capital goods excluding aircraft increased 1.7%. Census Bureau Report

The U.S. trade deficit increased from $42.8 billion in August (revised) to $43.5 billion in September.  The goods deficit rose $0.6 billion while the services surplus edged down $0.2 billion.  Census Bureau Report

U.S. News

The Wall Street Journal reports that House Republicans released their tax reform bill yesterday. The bill aims to reduce corporate taxes significantly and to simplify the individual tax code by collapsing seven brackets to three and eliminating most itemized deductions. WSJ

U.S. Economic News

U.S. Economic News

November 2, 2017

U.S. Economic Indicators

Nonfarm business sector labor productivity increased 3.0% in Q3 after rising 1.5% in Q2.  In year-over-year terms, productivity rose 1.5%.  Hours worked increased 0.8% in Q3 and unit labor costs rose 0.5%.  BLS Report
 
Initial jobless claims edged down 5,000 to 229,000 last week.  
The four-week moving average fell 7,250 to 232,500. DOL Report

U.S. News

The Wall Street Journal reports that President Trump will nominate Jerome Powell to be the next Fed chair. Powell is expected to approach monetary policy much like the outgoing chair Janet Yellen, who has been relatively cautious in voting to raise interest rates in the wake of the Great Recession. WSJ

According to the Wall Street Journal, the Republican tax bill released today will seek a permanent cut of the corporate tax rate to 20%. The plan will also maintain the highest individual tax rate of 39.6% for single filers making more than $500,000 and will repeal the estate tax starting in 2024. WSJ

Page 3 of 10712345...102030...Last »