Weekly economic review & outlook
Easy does it from the Fed
You Need to Know
Week in review
Fed eases again in September
The FOMC eased policy for the second time this year as it attempts to head off potential weakness in the economy stemming mostly from trade/tariffs.
Strong August data for housing
Existing homes sales climbed again for August, while a jump in housing starts could translate into faster new home sales in coming months.
New home sales to climb for August
Demand for new homes has been picking up in response to falling mortgage rates and the low supply on existing homes on the market.
Core inflation turns higher
Following the upward trend for the CPI, the broader core PCE price index should rise to a 12-month growth rate of 1.8 percent for August – the fastest pace this year.
In line with expectations, the Federal Reserve cut the target range for the federal funds rate by an additional 25 basis points (bps) following the September FOMC meeting. The post-meeting FOMC policy statement cited the weakening global economic backdrop and still tepid inflation readings within the U.S. as impetus for additional policy easing. While mostly unsaid in the statement, the uncertainty caused by volatile financial markets and the further escalation of the trade war with China since the last FOMC meeting in July likely also influenced the decision to add stimulus to the economy.