Weekly Economic Update 4/16: CBO Raises Job Growth Projection by 2.6 Million
The Congressional Budget Office (CBO) now projects 156.8 million jobs in America by year-end 2027—2.6 million more jobs than in its June 2017 Budget and Economic Outlook. CBO attributes an average of 1.1 million additional jobs over the next 10 years to the recently enacted Tax Cuts and Jobs Act.
March 2018 FOMC Review
The Fed raised its key monetary policy rate, the interest on excess reserves (IOER) rate, to 1.75%. The rate hike comes despite no signs of overheating and inflation remaining below the Fed’s 2% target. However, Fed projections for a year-end 2018 IOER rate of 2.25% remained unchanged.
Weekly Economic Update: March 19 - March 23
The JEC Majority is convinced that the U.S. economy has room to grow faster and, belatedly, experience some of the normal bounce-back from the recession. Market-oriented policies can release faster growth in the near term and better position the economy to counteract adverse long-term trends—particu...
Weekly Economic Update: February 12 - February 16, 2018
One of the key drivers behind 2017’s improved economic growth was business investment, notably in equipment, as the chart shows. Between 2009 and 2016, the amount of capital workers had to work with stagnated. This hindered productivity growth and, consequently, wage growth. This pickup in investmen...
Weekly Economic Update: February 5 - February 9, 2018
With the election of a Republican majority in Congress and the Trump presidency, a striking change in the U.S. economy’s trajectory occurred. The election outcome gave rise to relief from the Obama Administration’s growth-constraining policies. Improved expectations raised forward-looking indicators...
Weekly Economic Update: January 8 – January 12, 2018
The labor force participation rates of the prime working-age (25 to 54) population remained relatively stable or increased in other G7 countries since 2007.
Weekly Economic Update: December 18 – December 22, 2017
As tax reform advances, small business optimism surged in November, driven largely by an improved economic outlook, nearly reaching the record high of July 1983.
Weekly Economic Update: December 4 – December 8, 2017
Prior to 2008, private banks would use nearly every dollar of their customers’ deposits to issues loans and leases. However, now banks hold sizeable amounts in reserve instead, as the chart shows.
Weekly Economic Update: November 27 – December 1, 2017
The Chart of the Week shows that paying interest on reserves diminishes private banks' incentive to lend.
Weekly Economic Update: November 20 – November 24, 2017
The Weekly Economic Update's Chart of the Week shows that low unemployment is no longer correlated with high inflation, in other words, there is no more Phillips Curve.
