Maintaining the Faith

April 5, 2019 The economy experienced a number of damaging shocks in the past six months as the stock market plunged in the fourth quarter followed by the protracted government shutdown.  As a result, GDP growth in the fourth quarter slipped to 2.2%.  We do not yet...

Did the Fed Overreact?

March 22, 2019 In January Fed Chair Powell signaled that Fed policy would be on hold for a while.  Most economists thought that meant no rate hike through midyear, but with two rate hikes possible in the second half the funds rate would reach 2.9% by yearend.  On...

Trade Tantrum

March 8, 2019 The latest piece of news to rattle the market was the revelation that the trade deficit for goods widened to a record $900 billion last year.  We believe that the focus on the magnitude of the trade deficit is misplaced. First of all, we strongly believe...