Chief Economist Eugenio J. Alemán discusses current economic conditions.
Chief Economist Eugenio Alemán and Economist Giampiero Fuentes examine the factors which will contribute to the U.S. economy's path forward in 2023.
Many have been asking this question since earlier this year, a question that has no easy answer. As economists – us included – continue to forecast the most ‘telegraphed’ recession in history, it is important to point to those things that make this economic cycle very different from past economic cycles.
While economists have been lowering their employment forecast month over month over month, the U.S. labor market has continued to disappoint those forecasts and has remained relatively strong as well as relatively stable, with jobs growing at an average of 392,000 per month during 2022.
The U.S. economy is weak, as GDP numbers in both the second quarter and the third quarter have shown. The fundamental reason why the U.S. economy grew 2.6% during the third quarter of the year was because Net Exports, which is exports of goods and services...
With mortgage rates more than doubling from ~3% to over 7% today the difference in cost between buying a home twelve months ago compared to today is very big.
We believe that the Fed is going to increase the federal funds rate by 75 bps.