Fed Cuts Rates – Again (10/31)
"The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/2 percent.” Examine if “the economic growth was solid in the third quarter” (GDP). Discuss if the pace of economic growth will “likely slow in the near term, partly reflecting the intensification of the housing correction (See: Supply)? Do you expect to the Fed to cut interest rates again (Analysis)?
Consumer Sentiment Fell In October (10/26)
"Consumer sentiment fell more than expected in late October to its lowest in more than a year as concerns about the housing slump darkened the economic outlook, a survey released Friday showed.” Examine the latest University of Michigan Consumer Sentiment Index (Report). Since Consumer Sentiment is often seen as a proxy for future spending, which accounts for two-thirds of the U.S. economy, assess how the economy is expected to perform in the coming months (Trend). Examine how consumer expenditures fared during the past three years (Expenditure).
Consumer Sentiment Fell In October (10/26)
"Consumer sentiment fell more than expected in late October to its lowest in more than a year as concerns about the housing slump darkened the economic outlook, a survey released Friday showed.” Examine the latest University of Michigan Consumer Sentiment Index (Report). Since Consumer Sentiment is often seen as a proxy for future spending, which accounts for two-thirds of the U.S. economy, assess how the economy is expected to perform in the coming months (Trend). Examine how consumer expenditures fared during the past three years (Expenditure).
Beer Prices Are Likely To Climb (10/26)
"Small brewers from Australia to Oregon face the daunting prospect of tweaking their recipes or experimenting less with new brews thanks to shortages of key beer ingredients and rising prices for others.” Discuss how increasing commodity and intermediate good prices may affect the cost of beer production (PPI). Examine how a shortage of hop stocks may affect beer prices (Stock & Analysis).
Crude Oil Futures Set Record At $90 (10/19)
"Oil futures fell Friday, retreating from an earlier foray to a record above $90, as investors sold to lock in profits. Crude prices have jumped 14% in the past eight trading sessions.” Examine the latest NYMEX crude oil futures prices (Prices). Do you expect “wholesale” and “retail” gasoline prices to increase (AAA Survey)? Discuss what factors may contribute to the recent record high gasoline prices (Analysis & Supply Data). Assess what relationship, if any, may exist in the long run between high gas prices, inflation, and economic growth (CPI & GDP Growth).
Poker Tourneys Told To Report Big Wins Or Withhold Taxes (10/19)
"Casinos and other sponsors of poker tournaments will be required to report winnings of more than $5,000 to the Internal Revenue Service beginning March 4, 2008, the IRS said Friday.” Examine the new IRS requirement for tournament winners to report all their winnings on their federal income tax returns (IRS). Discuss if the Federal Tax Rate schedules are progressive or regressive (Schedules). How does the average American tax burden compare to the other developed economies in terms of the total national income (OECD)? Is there a correlation between tax burden and economic growth (Correlation)?
Retail Sales Pick Up In September (10/12)
"The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for September, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $380.2 billion, an increase of 0.6 percent (±0.5%) from the previous month and 5.0 percent (±0.8%) above September 2006. ” Examine the Advanced Monthly Sales for Retail and Food Services update. Discuss if the recent recession fears are warranted (Analysis). Review the National Accounts sector data and assess how important retail sales or personal consumption expenditures are to the overall well being of the economy (National Accounts). What has been the recent trend in retail and food services sales (Trend)?
World Bank Chief Seeks More Equity (10/10)
"Speaking at the National Press Club in Washington, marking his first 100 days as President of the World Bank Group, Zoellick explained that, “Globalization offers incredible opportunities. Yet exclusion, grinding poverty, and environmental damage create dangers.” View and listen to World Bank Group President Zoellick’s presentation on the bank’s vision (Presentation). What are top priorities for the bank (Analysis)? Discuss what role corruption may play in economic development (Corruption)?
September Jobs Report Is Solid (10/05)
"Non-farm payroll employment increased by 110,000 in September, and the unemployment rate was essentially unchanged at 4.7 percent.” Examine how September 2007 corresponds to the 49 th consecutive month of job growth thus setting a new record for the longest uninterrupted expansion of the U.S. labor market (Record). Study the September Employment Situation Summary Table A data to identify which sectors in the economy generated net positive jobs (Table A). Is President Bush’s bragging of achieving the new record warranted (Analysis)? What is the expected employment situation in the coming months (Analysis)?
Consumers Use Their Credit Cards (10/05)"Consumers have boosted their borrowing at the fastest pace in three months, turning increasingly to their credit cards to replace home equity loans as a source of eady cash.” Study the latest Consumer Credit data from the Federal Reserve Board and assess the level and the mix of consumer debts (Data). Do you expect Personal Saving rates to have increased or decreased during the recent past few years (Rates)? Determine where consumers spent their income and borrowing (Spending)? Discuss if this level of consumer spending is possible.
Service Economy Growth Slows (10/03)
"Business activity in the non-manufacturing sector increased at a slower rate in September than in August, say the nation's purchasing and supply executives in the atest Non-Manufacturing ISM Report On Business.” Discuss if the service sector is holding up (Analysis). Assess what share of the economy is driven by service (See Table 3). xamine how the overall economy is performing (GDP)?
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