Weekly Economic & Financial Commentary: Economic Data Reinforce Fed Patience

U.S. Review Economic

Data Reinforce Fed Patience

• Several indicators released this week signaled a moderation in the pace of economic growth, and provided further reinforcement for patience from the Fed on further monetary policy tightening.
• Retail sales rebounded in January, but the gain wasn’t enough to completely wash out the weak readings in December, suggesting a slow start to the year for consumer spending.
• Prices continue to increase only modestly, and with core inflation measures at or near the Fed’s target of 2%, increased risk of a break-out to the upside remains limited.

Global Review Still Slow

Going for Global Growth

• This week’s economic news remained consistent with the narrative of a slow-motion global expansion. Chinese activity data for early 2019 were mildly soft in tone, while Japan’s activity data were also subdued overall. Q4-GDP figures for the G20 were released and showed that outside of the United States, international economic growth remains on a steadily slowing trend
• U.K. GDP jumped in January, reversing its December fall, but it is unclear how long that growth pace will persist. The U.K. parliament voted this week to delay the Brexit date, extending uncertainty and likely pushing back Bank of England hikes. Inside U.S. Review 2 U.S. Outlook 3 Global Review 4 Global Outlook 5 Point of View 6 Topic of the Week 7 Market Data 8 Source: Federal Reserve Board, IHS Markit, U.S. Department of Commerce, U.S. Department of Labor and Wells Fargo Securities 

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