Economic Commentary

Economy & Policy August 16, 2024   Chief Economist Eugenio J. Alemán discusses current economic conditions. June’s rate of inflation showed, for the first time in several years, an important slowdown in shelter costs, something that economists, us included, have been expecting for a very long time but had not materialized. July’s shelter costs came […]

Economy & Policy August 09, 2024   Chief Economist Eugenio J. Alemán discusses current economic conditions. When the Federal Reserve (Fed) cut rates in response to the COVID-19 pandemic, mortgage rates fell below 3% in 2021 and many households refinanced or obtained new loans. Today, ~40% of homeowners own their home outright while 60% of […]

Economy & Policy August 02, 2024   Chief Economist Eugenio J. Alemán discusses current economic conditions. The relative weakness in July’s nonfarm payroll employment number and the increase in the rate of unemployment from 4.1% in June to 4.3% in July, triggering the Sahm Rule is a reminder of the difficult tasks ahead for the […]

Economy & Policy July 26, 2024   Chief Economist Eugenio J. Alemán discusses current economic conditions. The Federal Reserve (Fed) doesn’t like to spook markets, that is the reason why it has crafted its communication on monetary policy to give indications way in advance and nothing has been pointing to a change of heart that […]