FacebookLinkedIn

Weekly Economic Update, December 19-23, 2016

on Dec 21, 2016 in Announcements: Financial Planning, General Parrott Insurance News

FED RAISES RATES, PLOTS THREE 2017 HIKES
Federal Reserve policymakers unanimously chose to raise the benchmark interest rate by a quarter point last week. That was expected; less expected was the central bank’s adjustment to its 2017 dot-plot. Fed officials now see three rate hikes next year instead of two. The move to the new target range of 0.50-0.75% sent the dollar and bond yields higher Wednesday – the yield on the 2-year note quickly touched a peak unseen since August 2009. Stocks suffered only moderate losses after the announcement. Federal Open Market Committee members now forecast economic growth of 2.1% in 2017 and 2.0% in 2018.1

RETAIL SALES TICK UP, PRODUCER PRICES RISE
Economists, polled by Briefing.com, had expected a 0.4% October advance for retail purchases; the gain was only 0.1% instead, and 0.2% minus car and truck sales. The Producer Price Index rose 0.4% last month after a flat October; the core PPI also posted a 0.4% increase. Inflation pressure remained steady for the consumer: both the headline and core Consumer Price Index advanced 0.2% in November.2

HOUSING STARTS FALL FROM 9-YEAR PEAK
Groundbreaking declined 18.7% last month as winter arrived, with single-family starts down 4.1%. The Census Bureau also reported a 4.7% November decline in building permits.3

DOW ADVANCES, WHILE NASDAQ, S&P 500 RETREAT
A relatively calm trading week ended with the Dow Jones Industrial Average at 19,843.41, 0.44% higher than it had closed the previous Friday. Both the S&P 500 and Nasdaq Composite saw small weekly losses; the Nasdaq descended 0.13% to 5,437.16, while the S&P declined 0.06% to 2,258.07. Over on the NYMEX, light sweet crude settled at $51.94 a barrel Friday; gold at $1,135.60 an ounce.4

Citations.
1 – cnbc.com/2016/12/14/fed-raises-rates-for-the-second-time-in-a-decade.html [12/14/16]
2 – briefing.com/investor/calendars/economic/2016/12/12-16 [12/16/16]
3 – cnbc.com/2016/12/16/us-housing-starts-nov-2016.html [12/16/16]
4 – markets.wsj.com/us [12/16/16]

Home Member Login Contact Us

¤