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A blow-out third quarter, but slower growth ahead

OCT. 13, 2020

Economic Review: Strong, but slowing, economic growth (Page 3)

Very strong growth continues for most of the economy, but it has slowed from the extraordinary pace set earlier in the recovery. Notable exceptions are the service sector, which saw relatively faster growth in September versus a month prior, as well as housing and autos. Further slowing of overall growth is expected, but the pace of the recovery should remain above trend through at least next year.

Financial Markets Review: Equities down despite further economic recovery (Page 4)

The equity market careened downward late in September as new COVID-19 case counts and additional fiscal stimulus pessimism rose. The S&P 500 stock index flirted with correction territory, but regained its footing, limiting its monthly damage to less than four percent and pushing its overall third-quarter gain into the high single-digit range.

The Outlook: The dollar’s preeminent position unlikely at risk (Page 5)

After trending upward for much of the past decade, the U.S. dollar has been in retreat for the better part of 2020. And, as is typical when the greenback is in a downtrend, this year’s pullback has sparked concerns that a more structural realignment may be underway and that the dollar’s longstanding status as the world’s reserve currency could soon be in jeopardy.

Go deeper with the full October report linked below.

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