Last week’s GDP report caught headlines for the weak economic growth in Q1. But a less-discussed part of the report was the surge in corporate profits in the fourth quarter of 2016.
Where GDP goes, consumers follow.
Yesterday the Commerce Department reported that the U.S. economy grew at a 0.7% annualized rate in Q1, below estimates of 0.9%. There were some positive underlying trends within the report, but the market took this as a disappointment.
The bigger worry is that the GDP report and the University of Michigan’s Consumer Sentiment – which measures how people feel about the prospects of economic growth and their own budgets – track each other.
The real fed funds rate has sat below zero since the Financial Crisis. What does this mean for the U.S. economy?
Good morning. Here are 3 charts that are driving the chatter around finance, investing, and economics today.
Theresa May should get a full vote of confidence from the Tories, but will that actually result in real policy? Ask Donald Trump.
The dollar has become the bellwether for the Trump administration’s economic policies, but it’s unclear where the greenback will go from here.
The spread between 2-year and 10-year Treasuries provides a good benchmark for how investors feel about the Trump administration.
Politicians should focus on growing the economy to help those left behind. But that’s not enough – inequality still looms large over capitalism.
Economics has isolated itself to pure mathematics. We could use a bit more political economy, the philosophical style of yesterday’s economists like Schumpeter and Marshall.
Support for the UBI is often irrational, but the EITC also has its warts. Both change incentive structures around wages, which can bring big economic risks.