U.S. Outlook: Growth without inflation

Posted By Scott Anderson In Economic Outlook | No Comments

Next week’s economic indicators should highlight the strength and resilience of the U.S. economic expansion.

Graph showing long decline in initial jobless claims. [1]But will it be enough to distract investors from the near-term political risks coming from Washington?

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Aug. 25.

Key observations:
  • Job growth is sufficiently strong that the U.S. unemployment rate could drop again to an expansion low of 4.2% in August.
  • Many FOMC members could see this as a reason to stick with the plan of one more rate hike before end of the year, despite inflation holding below their targets.
  • For Q2 GDP, we are forecasting an upward revision of the initial 2.6% growth rate to an even stronger 2.9% annualized pace.
  • The U.S. consumer is back in the driver’s seat when it comes to U.S. economic performance.

 

Click here to read my full report. [2]

 


Article printed from Bank of the West: https://changematters.bankofthewest.com

URL to article: https://changematters.bankofthewest.com/2017/08/25/u-s-outlook-growth-without-inflation/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2017/08/graph_init_jobless_082517.jpg

[2] Click here to read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2017/08/BankoftheWest_USOutlook_08_25_17.pdf

Submit an Idea

[contact-form-7 id="32" title="Share An Idea"]

You are leaving the Bank of the West Change Matters site. Please be aware: The website you are about to enter is not operated by Bank of the West. Bank of the West does not endorse the content of this website and makes no warranty as to the accuracy of content or functionality of this website. The privacy and security policies of the site may differ from those practiced by Bank of the West. To proceed to this website, click OK, or hit Cancel to remain on the Bank of the West Change Matters site.