When the Commerce Department reported on December 22 that 3Q Gross Domestic Product increased at an annual rate of 3.5%, many of us in the forecasting business wondered if that figure might be too optimistic. We also wondered whether the economy could sustain a 3+% growth rate in the 4Q.
We all know that there is a savings crisis in America. According to the National Institute on Retirement Security (NIRS), the median savings balance of near-retirement households is only around $12,000, while the median saving balance for all working-age households is only around $3,000.
1. 3Q Gross Domestic Product Rises More Than Expected 2. Fed Seems to Admit That ZIRP Didn’t Work as Expected 3. President Trump Willing to Increase Domestic Spending 4. Time for the Fed to “Normalize” Monetary Policy 5. “Handing Down Your Legacy” Still Available For Free
President Obama is spending his last days in office trying to shore-up his “legacy.” He emphasizes that he inherited the worst economy since the Great Depression and most analysts would agree that is true for the most part.
To coin an old phrase, the country has “gone ape” in the wake of Donald Trump’s surprise election as the 45th President of the United States. The stock markets have skyrocketed to new record highs day after day. Consumer confidence has soared to the highest level since 2008.
President-elect Donald Trump promises that one of his very first actions when in office will be to withdraw the United States from the controversial Trans-Pacific Partnership (TPP), which was finalized earlier this year but must still be ratified by all of the participating nations.
Bond investors have had a rough ride in November. The Barclays Global Aggregate Bond Index plunged by 5% during the last two weeks just before and after the election...
Before I get into today’s topics, I think I speak for most Americans when I say that we are relieved that this election will finally be over late tonight or early tomorrow. This has been the ugliest and most embarrassing election in most of our lifetimes.
Forecasters who were predicting a surge in the economy in the second half of this year have revised those estimates much lower in recent weeks. It now looks like the economy may not achieve even 2% growth this year.
A few months ago, there was broad optimism that the US economy would shift into a higher gear in the second half of this year.