Weekly Economic Update: December 19 – December 23, 2016
CHART OF THE WEEK
The chart above shows the height of the federal funds rate—the interest rate the Federal Reserve “sets.” Since 2008 it’s remained at an historic low of less than 1%. Meanwhile, the monetary base, which measures the size of the Fed’s balance sheet, started to fall to $3.6 trillion from a high of $4.1 trillion in August 2014. Prior to the financial crisis in 2008 it was approximately $0.8 trillion.
For more details, please refer to the JEC’s recent release, Breaking the Conventional Mold: Monetary Policy Actions since the 2008 Financial Crisis.
LAST WEEK
News & Commentary Weekly Highlights:
- Bloomberg: Three Ways to Measure Trump's Impact (Thursday)
- Forbes: Obamacare Enrollment Year 3 Summary -- Increase In Mandate Penalty Has Not Improved Risk Pools (Thursday)
- The Guardian: Greece on collision course with lenders as ESM freezes debt relief (Wednesday)
- Yahoo Finance: Fed hikes rates, sees 3 more rate hikes in 2017 (Wednesday)
- Market Watch: Trump rally could mark biggest postelection stock market rise since Hoover (Tuesday)
- Bloomberg: Expect the Unexpected From Trump the Deal Maker (Monday)
Top Economic Indicator Highlights:
- Federal Reserve's Federal Open Market Committee (FOMC) Meeting Statement
- Fed Funds Rate Target Range
- New target: 0.50%-0.75%; Previous target: 0.25%-0.50%
- Fed Funds Rate Target Range
Noteworthy: As anticipated, the FOMC opted to hike its interest rate target range for only the second time since 2008 when the range fell to 0.00%-0.25%. The FOMC announced that it expects three rate hikes for 2017.
JEC Releases:
- December 2016 Federal Open Market Committee Announcement Review (Thursday)
- Coats, Tiberi: Americans Deserve Better ‘Undeniable Results’ (Thursday)
Council of Economic Advisers Releases:
- 2017 Economic Report of the President (Thursday)
THIS WEEK
Upcoming Economic Data and Events
- Monday
- Tuesday
- Philly Fed Non-Manufacturing Survey (8:30am)
- Wednesday
- Existing Home Sales (10:00am)
- Thursday
- Advance Durable Goods (8:30am)
- Chicago Fed National Activity Index (8:30am)
- Gross Domestic Product (Final Estimate) (8:30am)
- Jobless Claims (8:30am)
- Composite Indexes (10:00am)
- Personal Income/PCE Deflator (10:00am)
- Friday
- Revised Building Permits (8:00am)
- Michigan Consumer Sentiment (Final) (10:00am)
- New Residential Sales (10:00am)