U.S. Economic News

May 31, 2017

U.S. Economic Indicators

The National Association of Realtors pending home sales index fell 1.3% to 109.8 in April (down 3.3% Y/Y).  NAR attributes the decrease to weak supply which has made homes increasingly unaffordable to the average consumer.  NAR Report

U.S. News

According to the New York Times, Federal Reserve Governor Lael Brainard says that the Fed should raise interest rates soon despite recent signs that inflation has retreated from the Fed’s target. Brainard believes that the Fed should raise rates in June, although if inflationary pressures do not return then the path for future rate hikes may be less clear.  NYT

The Wall Street Journal reports that while Federal Reserve officials are likely to raise interest rates at their June meeting, the looming debt ceiling debate may slow the pace of future hikes.  Now that the debt ceiling may be reached sooner than expected, there is worry that a bitter fight over spending may throw markets into turmoil, which could necessitate a delay of further rate hikes. WSJ