U.S. Economic News

December 19, 2017

U.S. Economic Indicators

Privately-owned housing starts rose 3.3% in November to a seasonally adjusted annual rate of 1.30 million (up 12.9% year-over-year). Housing permits declined 1.4% to a 1.30 million annual pace in November but are up 3.4% on the year.  Census Bureau Report

U.S. News

The Wall Street Journal reports that San Francisco Fed President John Williams says that the U.S. economy is entering 2018 with solid momentum and the Fed should be on track for three rate hikes next year. Williams also said that Fed officials’ economic forecasts haven’t changed significantly due to the current tax plan moving through Congress, which he believes will not fundamentally alter what lies ahead for the U.S. economy. WSJ

Michael S. Derby of The Wall Street Journal reports that Minneapolis Fed President Neel Kashkari warned yesterday that the Federal Reserve could trigger a recession by enacting too many rate hikes too soon. Kashkari also expressed concern at the flattening of the yield curve, which in the past has often signaled a looming recession. WSJ

According to The Wall Street Journal, The House of Representatives is expected to vote on the current tax bill today, with the Senate following later Tuesday or Wednesday. The bill’s passage has been seen as increasingly likely, as the House is expected to pass it comfortably, and key Senate Republicans have expressed their support for the bill in recent days. WSJ