Economic Commentary

ECONOMY AND POLICY July 30, 2021   Chief Economist Scott Brown discusses current economic conditions. The economy strengthened considerably in the first half of this year, much more than the headline GDP figure would suggest. The key components, consumer spending and business fixed investment, each rose at double-digit percentage rates. Higher inflation is widely expected […]

ECONOMY AND POLICY July 23, 2021   Chief Economist Scott Brown discusses the latest market data. Next week, the economic calendar is full. The Federal Open Market Committee is widely expected to leave monetary policy unchanged, and it is unlikely that Chair Powell will signal an upcoming tapering of the monthly pace of asset purchases. […]

ECONOMY AND POLICY July 16, 2021   Chief Economist Scott Brown discusses the latest market data. Fed Chair Powell covered no new ground in his monetary policy testimony to Congress. Powell noted that while labor market conditions have improved, “there is still a long way to go.” Inflation is temporarily boosted by base effects and […]

ECONOMY AND POLICY July 16, 2021   Chief Economist Scott Brown discusses current economic conditions. Fed Chair Powell covered no new ground in his monetary policy testimony to Congress. The Fed is a long way from raising short- term interest rates (federal funds target rate at 0-0.25%) and is in no hurry to begin tapering […]