Improvements in the U.S. economy have boosted consumer confidence to a 17 year high. The Conference Board released its Consumer Confidence Survey on November 29th. Economic growth exceeds 3% per quarter. Unemployment has fallen to its lowest level since 2000. Personal incomes are increasing. Inflation remains low. But economists are beginning to see signs we are nearing the end of the economy’s record expansion. Labor markets are getting tighter. This quarter the economy passed the Congressional More

President Trump nominated Jerome Powell as the next Chairman of the Federal Reserve on November 2nd. On Tuesday he testified before the Senate Banking Commission. It is very likely he will be confirmed by the Senate and replace Janet Yellen in February. Who is Mr. Powell? Why did President Trump choose him? Will his leadership change recent monetary policy? What challenges will he face? More

Review our past State of the Economy blogs and you will find a consistent message. Low unemployment should put upward pressure on the price level. It hasn’t. This morning I read this explanation in the Wall Street Journal. I think the blog explains the Federal Reserve’s dilemma and why the improvement in employment has not increased inflation yet. Note it More

The economy remains strong. Unemployment and inflation remain low, while wages are increasing. The economy entered the third quarter growing at 3.1%. Hurricanes Harvey and Irma have probably lowered growth in the third quarter by lowering retail sales, shutting down manufacturing plants, and slowing homebuilding and home sales. However, the economy is expected to regain its momentum in the fourth quarter when communities rebuild. This should add pressure to wages and prices. More