Economic Commentary
Strong GDP growth in Q3 could become a threat to monetary policy
ECONOMY & POLICY October 27, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. The Federal Reserve (Fed) has been trying to slow down the U.S. economy for more than a year in order to slow down inflation. The process has, so far, been very successful, as shown by the graph below. However, […]
Strength in consumer demand remained intact in Q3
ECONOMY & POLICY October 20, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. The strength in consumer demand has been one of the defining characteristics of a very resilient U.S. economy and September’s retail and food services sales report confirmed that the U.S. consumer is alive and well. Recent upward revisions to […]
Disinflation is alive and well, but the Fed’s job is not over
ECONOMY & POLICY October 13, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. We hear and read daily analysis on how inflation is coming down and that the Federal Reserve (Fed) has beaten inflation. This is probably very close to the truth from an economics point of view. However, from an individual […]
Is the Fed taking note of market volatility?
ECONOMY & POLICY October 06, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. The Federal Reserve (Fed) only controls one rate of interest, and it is a very short-term rate called the federal funds rate, the rate that banks charge each other for overnight, intra-bank loans. The rest of the rates, i.e., […]