Economic Commentary

Chief Economist Scott Brown discusses current economic conditions. Real GDP rose at a 6.4% annual rate in the government’s second estimate of first quarter GDP growth, the same as in the advance estimate. However, Private Domestic Final Purchases (GDP less government, net exports, and the change in inventories), a better measure of underlying domestic demand, […]

Chief Economist Scott Brown discusses the latest market data. Real gross domestic product (GDP) rose at a 6.4% annual rate in the second estimate for the first quarter, same as in the advance estimate. However, key components (i.e., consumer spending, business fixed investment, residential investment) were each revised higher (inventories subtracted 2.8 percentage points from […]

Chief Economist Scott Brown discusses current economic conditions. The Federal Reserve’s views on the economy and monetary policy are often of fine gradation, leading to misquotes, misinterpretations, and misunderstandings. The April 27-28 FOMC minutes are a good example. Officials recognized that base effects (a rebound in prices that were depressed a year ago) would boost […]

Chief Economist Scott Brown discusses the latest market data. The April 27-28 FOMC minutes noted that “a number of participants suggested that if the economy continued to make rapid progress toward the committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.” […]