Weekly Economic Update: July 31 – August 4, 2017
CHART OF THE WEEK
Fed to Reduce Bond Holdings “Relatively Soon”
Last week the Fed announced that the balance sheet runoff program would begin “relatively soon.” JEC’s July FOMC Review provides a brief summary of how the Fed’s balance sheet normalization will work, assuming it starts in October after the next FOMC meeting in September.
LAST WEEK
News & Commentary Weekly Highlights
Wall Street Journal: Fed Ready to Shrink Bond holdings as Soon as September
Economics21: Six Persistent Myths About Taxes
AEIdeas: Why US innovation can be seen everywhere but in the GDP statistics
Wall Street Journal: Mortgage Interest Tax Break Has ‘No Effect’ on Homeownership, Study Finds
Top Economic Indicator Highlights
Gross Domestic Product (Second Quarter 2017—Advance Estimate)
Real GDP, change from previous quarter at seasonally adjusted annualized rate
Q2-2017: 2.6% Q1-2017: 1.2% Q4-2016: 1.8% Q3-2016: 2.8% Q2-2016: 2.2%
Noteworthy: Faster growth in consumer spending and federal government spending, along with a smaller decline in business inventories led real GDP growth to accelerate from the previous quarter. This acceleration was partially offset by reduced growth in residential investment, exports, and business fixed investment.
JEC Releases
Statement on Second Quarter GDP
THIS WEEK
Upcoming Economic Data and Events
Monday
Chicago Purchasing Managers Index (9:45am)
Pending Home Sales (10:00am)
Dallas Fed Manufacturing Survey (10:30am)
Tuesday
Personal Income/PCE Deflator (8:30am)
Construction (10:00am)
ISM Manufacturing (10:00am)
Dallas Fed Texas Retail Outlook Survey (10:30am)
Motor Vehicle Sales (4:00pm)
Wednesday
ADP National Employment Report (8:15am)
Thursday
ISM Non-Manufacturing (10:00am)
Manufacturers’ Shipments, Inventories, & Orders (10:00am)
Friday
Employment Situation (8:30am)
Trade Balance (8:30am)
