U.S. Trade Deficit Rises

The U.S. trade gap rose to a six-year high in November. This was driven by an increase in imports as American consumers increased their purchases of household items, luxury goods, and other products. According to the U.S. Commerce Department, the trade deficit increased by 3.2% from the previous month to $50.5 billion. Both imports and Read More…

Fourth Time’s a Charm

Angela Merkel took a big step toward securing a fourth term as Germany’s chancellor after her party, the conservatives, and its center-left rivals agreed recently on the terms of a renewed governing alliance. After a week of talks covering areas such as taxation and immigration, Angela Merkel’s Christian Democrats and the Social Democrats (SPD), said Read More…

U.S. Consumer Prices On the Rise

A rise in consumer prices in December and growth in retail sales exceeded expectations. With 2017 ending on a good note, and inflation numbers steady, U.S. economic growth continues. Forecasts for Q4 growth were adjusted 0.4% in December from the prior month. Analysts are expecting a 2.7% annual growth rate for gross domestic product in the Read More…

The Tax Bill

Last week Congress passed a $1.5 trillion tax cut and the largest structural overhaul of the tax system since 1986. The Senate passed the tax-overhaul bill, 51-48 Wednesday 20th after it swiftly passed through the House on a 227-203 vote on Tuesday 19th. The measure then headed to President Donald Trump for his signature on Read More…

New Federal Reserve Chief and What it Means

As Janet Yellen’s term comes to an end, President Trump chooses Jerome Powell as the new Federal Reserve chief. The new chief could mean little change in monetary policy and a less aggressive approach to financial regulation. Economists are currently expecting the Fed to raise short-term interest rates next month and lift them three times Read More…

US Growth

US data has revealed that the economy has its fastest six-month stretch of growth in three years despite a devastating period of natural disasters. This growth is followed by the 3.1% growth in the Q2, making it the first six-month stretch since 2014 in which US gross domestic product grew more than 3 per cent Read More…

Bank of Japan Continues Quantitative Easing Efforts

An elusive 2% inflation target leaves Japan contrarian to recent ECB and Federal Reserve strategies. On October 15th Bank of Japan Governor Haruhiko Kuroda stated that the central bank would continue to pursue its “aggressive” quantitative easing strategy to boost inflation. Kuroda’s decision is based on recently implemented labor-saving efficiency improvements, which are believed to Read More…

U.S. May Soon Leave NAFTA Behind

As President Trump continues to threaten U.S. withdrawal from the North American Free Trade Agreement, it could soon become reality. However, dismantling NAFTA would bring large changes for consumers and the global economy. Over the past quarter century, the agreement has reshaped the United States economy, and its demise could raise costs for North American Read More…