U.S. Economic News

August 11, 2017

U.S. Economic Indicators

Consumer prices edged up 0.1% in July (up 1.7% on the year).  The “core” CPI, which excludes food and energy, also inched up 0.1% in July and is up 1.7% on the year.  BLS Report

U.S. News

According to the Wall Street Journal’s monthly survey of forecasters, economists see a 22% chance that the U.S. government will shut down at the end of September. Economists also see a 17% chance that the Treasury will, at least temporarily, halt Social Security or government payroll payments to manage funding concerns. WSJ

Laura Saunders of the Wall Street Journal reports that the number of Americans penalized for underpaying estimated taxes rose nearly 40% between 2010 and 2015. Puzzling many experts, the average estimated-tax penalty over the same period has decreased, falling from about $210 to $130 over the five-year period. WSJ

The Wall Street Journal reports that most surveyed economists expect the Federal Reserve to begin unwinding its balance sheet at its next meeting in September, and to raise interest rates again in December. Although economists expect a rate hike in December, financial markets imply a less than 50% chance that the Fed will increase interest rates then. WSJ