U.S. - Labor Focus
- In the holiday-shortened week, analysts’ attention remained on the progress of the labor market. Recent jobless claims data remain stubbornly high and point to a slowing jobs rebound.
- Aside from claims, inflation data were also a highlight this week. Prices continued to pick up in August, but we expect it will be quite some time before inflation consistently exceeds 2%, preventing the Fed from lifting interest rates anytime soon.
- In our updated forecast this week, we released our initial estimates for 2022. At a high level, we expect the U.S. economy to grow above trend at 2.7% in 2022. For further details on our latest forecast, please see attached our Monthly Economic Outlook.
Global - ECB and BoC Relatively Quiet This Week
- It was a relatively quiet meeting for policymakers at the European Central Bank (ECB) this week. The policy statement was almost a verbatim copy of July’s and President Lagarde mainly toed the line in her comments.
- We remain constructive on the Euro zone recovery, but we will be watching the recent COVID-19 outbreak and the government responses very closely in the weeks ahead.
- The Bank of Canada (BoC) also met this week, and like the ECB it mostly left monetary policy unchanged. The central bank noted that the “bounce-back in activity in the third quarter looks to be faster than anticipated in July.”
Wells Fargo Economics & Financial Report / Aug 08, 2022
The Bureau of Labor Statistics reported this morning that nonfarm payrolls increased 528,000 for the month of July, easily topping estimates, lowering the unemployment rate to 3.5%.
Wells Fargo Economics & Financial Report / Jul 13, 2021
We added 850,00 jobs in June, but much of that was State governments school districts in some parts of the Country reopening just in time for summer break.
Wells Fargo Economics & Financial Report / Oct 10, 2021
While fears of an Evergrande default in China were rattling financial markets, for those of us in Southeast Texas who have survived the typically very hot months of July, August and September, this week brought the very welcome first early fall-like
Wells Fargo Economics & Financial Report / Oct 27, 2023
Treasury yields surged this week due to strong economic activity, impacting expectations for longer-term rates. New home sales led to a rise in single-family permits, but spiking mortgage rates are testing builder affordability strategies.
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 / Apr 29, 2020
The sudden stop in economic activity caused by the COVID-19 pandemic means that many businesses will need to rely on their cash reserves to survive the next few months.
Wells Fargo Economics & Financial Report / Sep 28, 2019
The release of the transcript of President Trump\'s phone conversation with Ukraine President Volodymyr Zelenskiy and the whistle blower complaint overshadowed most of this week\'s economic reports and took bond yields modestly lower.
Wells Fargo Economics & Financial Report / May 19, 2020
The U.S. is in a severe recession caused by the sudden shutdown due to the COVID-19 pandemic. Since the lock down began, the nation has lost 21.4 million jobs.
Wells Fargo Economics & Financial Report / May 30, 2020
The beginning of this week saw some optimism that the economic downturn could be relatively short-lived, but data through the rest of the week provided grim reminder of the economic damage from COVID-19.
Wells Fargo Economics & Financial Report / Sep 13, 2021
Data from the opening weekend of College Football indicates that we will have to endure another season of Nick Saban deification.