US Economy and Credit Markets Ended March 23, 2018

Bob Carey
Chief Market Strategist
Click for Bio

Blog Home

Send Us Your Comments And Questions

RSS Feed

US Economy and Credit Markets Ended March 23, 2018

Posted Under: Weekly Market Commentary

In his first meeting as Chairman of the Federal Reserve, Jerome Powell and his fellow governors chose to raise the federal-funds rate by 25 basis points to a range of 1.5 to 1.75%. The Fed called out strong growth in jobs while they had previously discussed jobs growth as solid. Additionally, they noted that the economic outlook had strengthened and increased their GDP growth estimate from 2.5% for 2018 to 2.7%. They also guided to 2.4% GDP growth in 2019, up from 2.1% previously. They expect inflation to reach its target in the coming months but left their 2018 federal funds target unchanged at 2.0-2.25%; which would represent three rate hikes. During the prior week President Trump threatened $60 billion of tariffs on Chinese imports and called out Chinese efforts to take U.S. Technology via deception. China responded by suggesting they would consider suspending their purchases of Treasuries. Currently, China ownership represents around 19% of all foreign Treasury holdings. This threat caused the longer end of the yield curve to increase on Friday. Major economic reports (related consensus forecasts, prior data) for the upcoming holiday-shortened week include: Tuesday: March Conference Board Consumer Confidence (131.0, 130.8); Wednesday: March 23 MBA Mortgage Applications (N/A, -1.1%), February preliminary Wholesale Inventories (N/A, 0.8%) and Q4 2017 Annualized QoQ GDP (2.7%, 2.5%); Thursday: March Chicago Purchasing Manager (62.0, 61.9), February Personal Income (0.4%, 0.4%), February Personal Spending (0.2%, 0.2%), March University of Michigan Consumer Sentiment (102.0, 102.0) and March 244 Initial Jobless Claims (230K, 229K).

Posted on Monday, March 26, 2018 @ 8:09 AM • Post Link	Share:
Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

Most Current Posts

<<< Newer Posts • Older Posts >>>

Search Posts

MARKET ANALYSIS

Market Commentary and Analysis
•	Market Commentary Video
•	Weekly Market Commentary
•	Weekly Market Watch
•	Monthly Talking Points
•	Quarterly Newsletter
•	Market Observations

Subscribe To Receive Email

PREVIOUS POSTS
•	S&P 500 Index’s Dividend Payout Still Trending Higher
•	The Real Rate Of Return On The 10-Year Treasury Note (T-Note) Is Still Low
•	US Stocks Ended March 16, 2018
•	US Economy and Credit Markets Ended March 16, 2018
•	Biotechnology Stocks Look Cheap Relative To Past Decade
•	This Covered Call Index Tends To Beat The Broader Market In Low And Negative Return Climates
•	US Stocks Ended March 9, 2018
•	US Economy and Credit Markets Ended March 9, 2018
•	Passive Investment Vehicles Have Posted The Strongest Asset Growth Since The End Of 2007
•	Interest Rates Policy and the Markets