President Donald Trump, already in a grumpy post-midterm mood, faces a growing list of economic problems that could irritate him even more next year. Chief among them is a withdrawal from the economy’s sugar high. Fiscal stimulus from the GOP tax cuts is likely to start running out. The Federal Reserve is expected to keep bumping up interest rates. And few analysts expect a divided Congress — facing soaring deficits and with its eyes on 2020 — to join hands and pass a big infrastructure package or sweeping middle-class tax cuts to keep the fiscal juice flowing.Story Continued Below The collection of all these factors, coupled with jittery investors already worried about trade wars and a global slowdown, could deny Trump the kind of big economic growth numbers he loves to celebrate. And they could undercut one of the GOP’s biggest current arguments: You may not love what Trump says or does, but the Trump economy is awesome. “The first punch will be the lag … [Read more...] about The looming threat to Trump’s booming economy
Economy
Strong U.S. economy boosts Walmart’s third-quarter sales
NEW YORK (Reuters) - Walmart Inc (WMT.N) reported higher-than-expected quarterly U.S. comparable sales on Thursday and raised its full year outlook as a strong economy boosted customer store visits and e-commerce purchases grew as it sold more groceries online. FILE PHOTO: A shopper is seen in the aisle of a Walmart store in Woodstock, Georgia, U.S., June 28, 2018. Picture taken June 28, 2018. REUTERS/Nandita Bose/File Photo The retailer’s profits, however, continued to be under pressure. Margins were impacted as Walmart absorbed higher transportation costs and invested heavily in its online business. Walmart’s shares, which traded up premarket and opened higher, reversed course in early trade. Shares were down 1.04 percent at $100.47 per share as investors were spooked by poor performance from J.C. Penney (JCP.N) and Dillard’s Inc (DDS.N), turning bearish on retail stocks, analysts said. Strong consumer spending has helped many brick-and-mortar retailers … [Read more...] about Strong U.S. economy boosts Walmart’s third-quarter sales
U-M forecast: U.S. economy to start slowing, deficit and wages to rise
JC Reindl Detroit Free Press Published 9:30 AM EST Nov 15, 2018 The U.S. economy will grow a little slower in 2019 as the immediate effects of the recent deficit-widening tax cuts wear off, although workers will enjoy better wage growth into 2020, according to the University of Michigan's annual economic forecast released Thursday. The forecast by U-M economists anticipates 2.7 percent year-over-year GDP growth in 2019, below the 3.3 percent average pace of the first three quarters of this year. The Republicans' tax overhaul, which took effect in January, was largely responsible for this year's exceptional GDP growth that is expected to run 3 percent for the full year. Yet the forecast refers to this boost as a "budget-deficit-fueled high" that will ultimately push the federal deficit into uncharted territory. More: Trump auto tariffs on hold; industry breathes a temporary sigh of relief More: How to get … [Read more...] about U-M forecast: U.S. economy to start slowing, deficit and wages to rise
Why the Housing Market Is Slumping Despite a Booming Economy
Sections SEARCH Skip to content Skip to site index Subscribe Log In Log In Today’s Paper The Upshot | Why the Housing Market Is Slumping Despite a Booming Economy Upshot Supported by Home prices are out of reach relative to incomes and mortgage rates. The big question for the economy is how the imbalance adjusts. ByNeil Irwin Nov. 15, 2018 These should be happy times for the housing sector. The economy is booming, with more people working at higher pay, and with the sizable millennial generation reaching prime home buying age. Instead, the housing market has gone soft, Sales of new single-family homes were down 22 percent in September from their recent high in November 2017, and existing home sales in Home prices have not declined nationally, at least according to the most widely followed indexes. But their rate of increase has declined, and more and more home sellers are finding they must reduce … [Read more...] about Why the Housing Market Is Slumping Despite a Booming Economy
UK economy can’t afford McDonnell’s call for a four-day working week
How can you tell when there might be a general election in the offing? One straw in the wind is when the hard-left mavericks running Her Majesty’s Opposition start handing out the vote-winning economic sweeties. Naturally it doesn’t matter how little sense they make. Hence the hints from shadow chancellor John McDonnell that he finds the idea of a four-day week “really interesting”. Although it isn’t Labour party policy yet, McDonnell likes the idea so much he’s apparently had discussions with crossbench peer Lord Skidelsky, who put forward the idea of an inquiry into “the feasibility of a shorter working week”. Skidelsky is renowned as the biographer of John Maynard Keynes, who nearly 90 years ago wrote that by now we’d be so wealthy we’d be working 15-hour weeks. The great economist was right about a lot of things but, as tired strap-hangers reading this everywhere will attest, he was completely wrong … [Read more...] about UK economy can’t afford McDonnell’s call for a four-day working week