Fed Chair: "We Remain In Extraordinary Times."
Published Friday, October 5, 2018 at: 7:00 AM EDT
Not since the 1950s, Federal Reserve Board Chair Jerome Powell said this week, has inflation and unemployment remained so low for so long.
Speaking in Boston on Tuesday, Mr. Powell depicted a throwback to economic conditions seen only briefly in post-War U.S. history, and fresh data released Thursday and Friday reinforced Mr. Powell's "remarkably positive outlook."
In the 88% of the U.S. economy outside of the manufacturing sector, purchasing activity soared in September, climbing to the highest level since inception of the index in January 2008. According to Thursday's report from the Institute for Supply Management, the forward-looking new orders component of the index slowed slightly from August but remained very strong.
Purchasing activity, at the 12% of the economy in manufacturing, also remained in record territory.
In the three decades since purchasing activity in the manufacturing sector was first collected monthly by the ISI in January 1989, the index rarely has been as high as in September.
Meanwhile, the Labor Department said on Friday that unemployment, from its record low in August, ticked lower in September — as low as it's been since 1969.
Remarkably, core inflation, which excludes volatile monthly expenses from a consumer's monthly expenses, didn't budge. Growth without wage inflation accurately describes economic conditions currently, and in his speech, Mr. Powell said he expected more of the same in the months ahead. Core inflation has been "anchored" at 2% for 20 years.
"We remain in extraordinary times," Mr. Powell said in his concluding published remarks at Tuesday's annual gathering of business economists. "I am glad to be able to stand here and say that the economy is strong, unemployment is near 50-year lows, and inflation is roughly at our 2% objective. The baseline outlook of forecasters inside and outside the Fed is for more of the same."
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.
- With Economic Recovery Intact, Stocks Are Near Record Again
- Are The Five Stocks Driving The Market's Great Returns Overvalued?
- Despite Gloomy Jobs Report, The Economic Outlook Remains Bright
- S&P 500 Rebounded Today After A Difficult Week And Month
- China Financial Contagion Fears Come And Go In A Few Days
- August Retail Sales Indicate The Recovery Is Intact
- This Week’s Financial Economic News
- Latest Financial Economic News For Investors
- After Fed Inflation Policy Speech, Stocks Closed At New Record High
- Stocks Closed 1% Off All-Time High; Strong New Economic Data
- Stocks Broke Record High Again This Week
- U.S. Jobs Picture Improved, Covid Variant Risk Declined, And Stocks Closed Week At Record
- This Week’s Economic And Investment News
- Positive Earnings, Housing, and LEI News; Stocks Closed Week At A Record
- Today Versus Post-War History Of U.S Economic Cycles
- Stocks Surged 1.1% Today, Closing At A Record High For The Third Straight Week
- Strong Jobs Report Confirms Recovery
- What's Ahead For The Second Half Of 2021?
- Despite Strong Economic News, Stocks Dropped This Past Week
- Stocks Closed At A Record High; What's Expected For The Rest of 2021?
- Jobs Situation Report Pushes Stocks A Fraction From All Time High
- Inflation Rate Doubled In Past Two Months
- Fed Signals It's Thinking About Starting To Talk About Tightening
- Expect Inflation To Make Investors Nervous Through 2021