U.S - Policy Moves Are More Important than the Data
- The Federal Reserve greatly expanded the collateral that it is willing to buy, further easing pressures in financial markets.
- While hiccups in implementing the Payroll Protection Program have been frustrating, the plan offers significant relief to small businesses that will lessen the severity of the downturn and contribute to a speedier recovery.
- High frequency data, such as jobless claims, consumer confidence and mortgage applications, continue to show an economy under intense pressure. Inflation data are largely old news given the sharp plunge in demand in recent weeks.
Global - Bad Economic News Keeps on Coming
- 2020 is going to be a very tough year for the global economy. In our latest forecast update published earlier this week, we highlighted that every major economy we monitor will suffer a recession, and we revised our GDP forecast down further to project a 2.7% global contraction this year.
- This week’s data gave further clarity on how bad global activity might be. Canada’s March employment fell by one million, and given a large drop in hours worked a sizable Q1 decline looks assured. The U.K. economy was slowing even before the virus hit and the U.K. should also see Q1 GDP fall, while next week’s data focus will be an expected slump in China’s Q1 GDP.
Wells Fargo Economics & Financial Report / Nov 28, 2020
It may be a holiday-shortened week, but there have been as many developments and economic indicators packed into three days as we can recall seeing in any other week this year.
Wells Fargo Economics & Financial Report / May 25, 2021
Over the past year, the housing market has become white-hot.
Wells Fargo Economics & Financial Report / Feb 28, 2023
Existing home sales declined 0.7% in January, while new home sales leaped 7.2%. Real personal spending shot higher in January, and solid growth in discretionary spending suggests continued consumer resilience.
Wells Fargo Economics & Financial Report / Nov 17, 2020
The U.S. election has come and gone, but we have not made any meaningful changes to our economic outlook, which continues to look for further expansion in the U.S. economy in coming quarters.
Wells Fargo Economics & Financial Report / Jun 08, 2022
While talk of recession has kicked up in recent weeks, the majority of economic data remain consistent with modest growth.
Wells Fargo Economics & Financial Report / Sep 23, 2021
While we were picking up tree limbs from the yard, data released this week generally showed a stronger economy in August than many expected in the wake of surging COVID cases.
Wells Fargo Economics & Financial Report / Feb 27, 2022
What a crazy week. It’s hard to worry about something as relatively unimportant as economic trends when one thinks about what folks in Ukraine are enduring, but economies are nonetheless impacted.
Wells Fargo Economics & Financial Report / Dec 21, 2019
President Trump became the third president in U.S. history to be impeached by the House, but removal by the Senate is highly unlikely. The House also passed the USMCA, which should be signed into law in early 2020.
Wells Fargo Economics & Financial Report / Feb 14, 2022
Deep thought for the week, if a tree falls in the forest, or an Olympics occurs, and no one is there to hear it or see it, did it really occur?
Wells Fargo Economics & Financial Report / Mar 08, 2022
February\'s employment data showed the economy had strong momentum, but that seems pretty dated now with Russia\'s invasion of Ukraine and the Fed\'s shift to a more hawkish tone on monetary policy.