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US Economy: Latest News and Analysis

Global Macro Playbook
Fed Cuts Rates, But Mortgage Costs Climb Higher

Despite the Federal Reserve's efforts to lower interest rates and potentially make homes more affordable, mortgage costs continue to rise, reports the Wall Street Journal. This unexpected outcome is driven by several factors, including rising long-term Treasury yields and stubborn inflation.

Average 30-year mortgage rates have climbed to

Global Macro Playbook
US Economic Growth Revised Upward to 3.1% in Third Quarter

The US economy grew at a faster pace in the third quarter than previously estimated, fueled by stronger consumer spending and exports, reports Bloomberg.

Gross domestic product (GDP) increased at an annualized rate of 3.1% in the July-to-September period, according to the Bureau of Economic Analysis' third estimate

Reuters
US consumer spending solid; inflation showing progress as year ends
U.S. consumer spending increased in November amid strong demand for a range of goods and services, underscoring the economy's resilience, which saw the Federal Reserve this week projecting fewer ...
CNBC
Mercer's Olaolu Aganga gives Mercer's 2025 economic outlook
Olaolu Aganga, Mercer US chief investment officer, joins 'Closing Bell: Overtime' to discuss her 2025 economic and market outlook, as well as the growth for AI and Bitcoin.
Global Macro Playbook
Trump's Policies May Limit Fed Rate Cuts in 2025

The Federal Reserve's "hawkish" quarter-point rate cut, the third of 2024, signals a shift towards a more cautious approach to monetary policy, and President-elect Donald Trump's proposed policies could further limit the central bank's ability to lower rates in 2025, according to

Global Macro Playbook
Trump Threatens EU with Tariffs Over Oil and Gas Imports

President-elect Donald Trump has warned the European Union that it must significantly increase purchases of US oil and gas or face tariffs on a wide range of exports, including cars and machinery, reports Reuters.

Trump, who takes office on January 20, 2025, issued the ultimatum in a post on Truth

Global Macro Playbook
US Consumer Spending Remains Strong as Inflation Moderates

US consumer spending increased in November, signaling continued strength in the economy despite rising interest rates, reports Reuters. This resilience comes as the Federal Reserve this week projected fewer interest rate cuts in 2025 than previously anticipated.

The Commerce Department reported Friday that consumer spending rose 0.4% last month,

Reuters
US government shutdown showdown creates another investor worry
The messy process of trying to avert a U.S. government shutdown offers investors a glimpse into challenges the incoming Trump administration will face in implementing its agenda, adding a market ...
U.S. News & World Report
Trio of Economic Reports Show a Strong End to 2024
The leading indicators index, a measure of future economic activity, increased 0.3 in November for its first monthly gain since 2022, on strength in the stock market, decreasing unemployment claims ...
Newsweek
US Economy Grows 3.1% in Q3 Thanks to Consumer Spending Boom
The U.S. economy grew at an annualized rate of 3.1 percent two, driven by a surge in consumer spending and exports, according to revised data from the Commerce Department released on Thursday.
Reuters
US economy eyes strong finish ahead of heightened policy uncertainty in 2025
The number of Americans filing new applications for jobless benefits fell more than expected last week, almost reversing the prior two weeks' increases and suggesting that a gradual labor market ...
Reuters
IMF says Fed taking appropriate action on rates given high US uncertainty
The International Monetary Fund views Wednesday's Federal Reserve interest rate cut and adoption of a more cautious outlook as appropriate given high U.S. economic uncertainty, IMF spokesperson Julie ...
Wall Street Journal
Copper Falls After Fed Signals Rate-Cut Slowdown
Gold prices extend losses in evening trade in Europe, after the latest U.S. data showed the economy grew faster than previously estimated, largely due to greater exports and robust consumer spending.
Reuters
Oil drops as dour economic outlook adds to oversupply concerns
Oil prices wobbled on Thursday after the U.S. Federal Reserve signalled it would slow the pace of interest rate cuts in 2025, which could hurt economic growth, reduce fuel demand and strengthen the ...
Global Macro Playbook
Trump-Backed Funding Plan Fails, Government Shutdown Looms

The Republican-led House of Representatives rejected a temporary funding plan backed by President-elect Donald Trump on Thursday, with just over 24 hours to spare before a US government shutdown, reports Bloomberg. The move capped an extraordinary two days in Washington that tested the incoming president's power.

Trump and

Reuters
US consumer spending rises in November; monthly inflation subsides
U.S. consumer spending increased in November, underscoring the economy's enduring strength, which prompted the Federal Reserve this week to project fewer interest rate cuts in 2025 than it had three ...
Financial Times
Economist Abhijit Banerjee: ‘Good storytellers are very powerful’
The Nobel-winner on how his discipline can communicate better, the secret of Trump’s appeal — and what gifts really mean ...
Reuters
US consumer spending rises in November; monthly inflation benign
U.S. consumer spending increased in November amid strong demand for a range of goods and services, underscoring the economy's resilience, which saw the Federal Reserve this week projecting fewer ...
Reuters
Gold edges down as markets eye Fed's 2025 monetary policy outlook
(Reuters) - Gold prices edged lower as the dollar held firm on Wednesday, with investors awaiting a key U.S. Federal Reserve decision expected to shape market sentiment and gold's trajectory by ...
U.S. News & World Report
Fed Cuts Rates for Now, But Suggests a Slower Easing Ahead as Economy Remains Strong
The Fed now sees inflation remaining somewhat higher, with the federal funds rate now projected to end 2025 at 3.9%. That is a half point higher than the central bank forecast in September and the ...
CNBC
Powell: The US economy isn't feeling the effects of geopolitical turmoil, but it remains a risk
Federal Reserve Chair Jerome Powell fields questions from reporters after the central bank announced it had lowered its key interest rate by a quarter percentage point, marking the third consecutive ...
Reuters
US single-family housing starts rebound; tariffs an obstacle
U.S. single-family homebuilding rebounded in November as the drag from hurricanes faded, but the threat of tariffs on imported goods and potential labor shortages from mass deportations of immigrants ...
Reuters
Stocks skid after Fed signals it will slow down its easing
U.S. stocks plunged on Wednesday after the Federal Reserve cut interest rates by a quarter of a percentage point and the central bank's economic projections signaled a slower pace of cuts next year. According to preliminary data,
Reuters
Oil settles up after US crude stocks fall, Fed's 2025 outlook curbs gains
Oil prices settled higher on Wednesday after U.S. crude inventories fell and the U.S. Federal Reserve cut interest rates as expected, but gains were capped as the Fed signalled it would slow the pace ...
Financial Times
Federal Reserve cuts rates but ‘hawkish’ forecast hits stocks and sends dollar jumping
US currency hits highest level in two years after central bank signals only half a percentage point of reductions in 2025
Wall Street Journal
Treasury Yields, Dollar Rise, Stocks Fall on Hawkish Fed
The U.S. dollar rose after the Fed cut interest rates by 25 basis points, as markets had priced, while making hawkish changes to its economic forecasts.
Financial Times
Donald Trump’s pledges seep into Federal Reserve’s outlook
Tariff threats partly to blame for ‘striking’ increase in central bank’s US inflation forecasts, say economists ...
Reuters
US stocks face headwind from rising yields after Fed signals fewer rate cuts
The rally in U.S. stocks is encountering a fresh hurdle -- a potentially problematic rise in Treasury yields as the Federal Reserve signals fewer interest rate cuts for 2025.
Reuters
Most Gulf central banks follow Fed lead and cut key interest rates
Most central banks of the Gulf Cooperation Council cut key interest rates on Wednesday, following the Federal Reserve's decision to reduce U.S. rates by a quarter of a percentage point. The Federal Reserve on Wednesday lowered the federal funds target rate range by 25 basis points (bps) to between 4.
Bloomberg
US GDP Revised Up to 3.1% on Stronger Consumer Spending, Exports
The US economy expanded at a faster pace in the third quarter than previously estimated, owing in part to to stronger consumer spending and exports.
Reuters
US weekly jobless claims fall more than expected
The number of Americans filing new applications for jobless benefits fell more than expected last week, consistent with a gradual cooling in labor market conditions.
Reuters
US third-quarter economic growth revised higher
The U.S. economy grew faster than previously estimated in the third quarter, driven by robust consumer spending.
Bloomberg
US Growth Revised to 3.1% on Stronger Consumer Spending, Exports
The US economy expanded at a faster pace in the third quarter than previously estimated, owing in part to to stronger consumer spending and exports.
Bloomberg
US GDP Revised to 3.1% as Jobless Claims Fall
US gross domestic product increased at a 3.1% annualized rate in the third quarter, the third estimate of the figures from the Bureau of Economic Analysis showed. That compared to a previous ...
Reuters
Oil edges higher on falling US crude inventories, Fed's 2025 outlook limits gains
Oil prices rose slightly on Thursday, supported by falling U.S. crude inventories, though gains were limited after the U.S. Federal Reserve signalled it would slow the pace of interest rate cuts in ...
Reuters
US weekly jobless claims fall; third-quarter GDP growth revised higher
The number of Americans filing new applications for jobless benefits fell more than expected last week, reversing the prior week's jump and suggesting that a gradual labor market slowdown remained in ...
The Hill
Third-quarter GDP marked higher, jobless claims ease as US economy flexes muscle
Third-quarter gross domestic product (GDP) was revised higher Thursday following a substantially stronger projection for U.S. economic performance released Wednesday by the Federal Reserve. GDP ...
Wall Street Journal
Dollar Hovers Near 2-Year High After Fed Decision
The dollar was hovering close to a two-year high after the Fed signaled a slower pace of interest rate cuts next year.
Global Macro Playbook
US Manufacturing Growth Stalls in November

Despite the end of a crippling strike at Boeing, the US manufacturing sector showed only a modest rebound in November, according to data released by the Federal Reserve on Tuesday, reports Reuters. Factory output rose by just 0.2% last month, falling short of economist predictions for a 0.5%

Newsweek
US Retail Sales Rise in November, Boosting Holiday Shopping Outlook
Retail sales rose 0.7 percent, the Commerce Department reported Tuesday, surpassing October's 0.5 percent gain. Auto dealers drove much of the increase, with sales jumping 2.6 percent, likely fueled ...
Reuters
US retail sales showcase economy's enduring strength
U.S. retail sales increased more than expected in November as households stepped up purchases of motor vehicles and online merchandise, consistent with strong underlying momentum in the economy as the ...
Bloomberg
Domino Theory of Norms Spells Doom for US Politics
The shocking public reaction to the murder of a health care CEO is the latest sign of how fragile norms in America have become. Break one, and others start to crack.
Reuters
Fed expected to combine interest rate cut with hawkish 2025 outlook
The Federal Reserve is expected to lower borrowing costs on Wednesday in what some observers are calling a "hawkish cut" set to be delivered alongside policymakers' updated interest rate outlooks and ...
Reuters
US single-family housing starts rebound in November
The United States imports large quantities of lumber from Canada ... relief for homebuilders would happen immediately," said Nancy Vanden Houten, U.S. lead economist at Oxford Economics. "Many of the ...
Reuters
US current account deficit hits record high in the third quarter
The U.S. current account deficit widened to a record high in the third quarter amid a surge in imports and lower primary income receipts.
Bloomberg
Trump Tariff Risk Casts Doubt on IPO Blowout Forecast for 2025
A flurry of large deals next year could blow past the $43 billion raised through first time share sales this year on US exchanges, data compiled by Bloomberg show. Still, even with markets hanging ...
Reuters
Oil steady ahead of US Fed rate decision, 2025 outlook
Oil prices traded in a narrow range on Wednesday as investors stayed cautious ahead of a potential interest rate cut by the U.S. Federal Reserve and its projections for 2025, while a draw in U.S.
CNBC
10-year Treasury yield increases as Fed signals caution on rate cuts in 2025
The yield on the 10-year Treasury rose around 9 basis points to 4.474%. The 2-year Treasury yield surged more than 8 basis points to 4.327%. Yields and prices have an inverted rel
Reuters
Futures move higher in run-up to Fed rate decision
U.S. stock index futures edged up on Wednesday, as markets eagerly awaited the Federal Reserve's final rate decision of the year and signals on whether policymakers will take a more cautious stance in 2025.