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Fed’s Course Correction

On July 30, 2019, Posted by , In Weekly Economic Commentary, With No Comments

The Federal Reserve (Fed) completed its U-turn in policy last week. Policymakers announced a 25-basis point (0.25%) rate cut July 31, its first in 10 years. If you are having trouble viewing the Weekly Economic Commentary below, please click here. Looking for last week’s edition? Please click here.

A Wild Week in Review

On January 8, 2019, Posted by , In Weekly Economic Commentary, With No Comments

Economic data has been under a microscope since the Federal Reserve (Fed) emphasized its allegiance to data dependency after raising interest rates in December. The Fed’s rate hike and Fed Chair Jerome Powell’s post-meeting press conference rhetoric spooked investors, who have been bombarded with negative headlines about trade, geopolitical squabbles,…

Market Fears and Economic Realities

On January 3, 2019, Posted by , In Weekly Economic Commentary, With No Comments

Market participants’ evaluation of increasing policy uncertainty has contributed to sharp equity market declines over the last quarter. The list of issues raising concerns has been broad: the Federal Reserve (Fed); trade policy; looming Brexit deadlines; lack of a fiscal response to slowing growth abroad; worries about a slowing fiscal…

U.S.-China Trade Deal, One Week Later

On December 11, 2018, Posted by , In Weekly Economic Commentary, With No Comments

While the broad outline of a negotiating period was a positive takeaway from the trade agreement between Presidents Donald Trump and Xi Jinping at the G-20 summit, details remain elusive. Headlines following the meeting signaled a meaningful cooling of tensions as the Trump administration put a hold on further tariff…

Fed Shows Flexibility

On December 4, 2018, Posted by , In Weekly Economic Commentary, With No Comments

Last week, dovish language from the Federal Reserve (Fed) fueled one of the strongest rallies in U.S. stocks this year. On November 28, the S&P 500 Index posted its biggest daily gain since March and the U.S. dollar dropped the most in two weeks after Fed Chair Jerome Powell said…

The Current State of Capex

On November 27, 2018, Posted by , In Weekly Economic Commentary, With No Comments

Business capital expenditures (capex) have grown solidly over the past two years after an oil-related contraction in 2015 and 2016. Part of the turnaround has been a natural rebound from those two years of slowdown, but fiscal stimulus is also playing an increasingly important role. Tax and spending packages passed…

Economic Takeaways from the Brexit Deal

On November 20, 2018, Posted by , In Weekly Economic Commentary, With No Comments

Political tensions in Europe are flaring up again—this time over Brexit. As shown in the LPL Chart of the Day, the British pound and the euro both dropped to the lowest levels since June 2017 after the U.K. government agreed last week on a proposed plan for the country to…

Trade Check-In

On November 13, 2018, Posted by , In Weekly Economic Commentary, With No Comments

The U.S.-China trade dispute has carried on for about eight months, with no agreement in sight. To date, the U.S. has imposed tariffs on about $250 billion in Chinese goods, representing about half of what the U.S. imported from China last year. In turn, China has retaliated with its own…

Rising Wages and the U.S. Economy

On November 6, 2018, Posted by , In Weekly Economic Commentary, With No Comments

U.S. wage growth has been one of the most highly scrutinized economic trends recently. Investors watch average hourly earnings and employment cost data to gauge inflationary pressures, as wages represent up to 70% of business costs, and the Federal Reserve’s (Fed) dual mandate includes achieving stable prices. So far, wage…

Focusing on Fundamentals

On October 30, 2018, Posted by , In Weekly Economic Commentary, With No Comments

Financial markets have had the roughest October in years as investors have grown wary over future corporate profits and the Federal Reserve’s (Fed) monetary policy plans. Even as markets fluctuate, we encourage investors to focus on the fundamentals. We remain optimistic on the U.S. economy, and we believe that continued…