Weekly Economic Update: June 16-20, 2014

Jun 23 2014

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Industrial production increased 0.6% in May. The consumer price index rose 0.4% in May, while core CPI rose 0.3%. Housing starts fell 6.5% in May to an annualized pace of 1.001 million units. Building permits fell 6.4% in May to an annualized pace of 991,000 units. The FOMC announced that policy rates are unchanged at a range of zero to 0.25% and taper remains on schedule with bond purchases cut another $10 billion to $35 billion starting in July. Initial jobless claims fell 6,000 to 312,000 for the week ended 6/14.

• Industrial production increased 0.6% in May. Manufacturing was also up 0.6%.

• The consumer price index rose 0.4% in May, while core CPI rose 0.3%. Over the year, headline CPI is up 2.1%, while core CPI is up 1.9%.

• Housing starts fell 6.5% in May to an annualized pace of 1.001 million units. Starts are up 9.4% on a year-ago basis.

• Building permits fell 6.4% in May to an annualized pace of 991,000 units. Permits are down 1.9% on a year-ago basis.

• The FOMC announced that policy rates are unchanged at a range of zero to 0.25% and taper remains on schedule with bond purchases cut another $10 billion to $35 billion starting in July. Purchases of agency mortgage-backed securities are down to $15 billion per month and longer-term Treasuries are down to a pace of $20 billion per month. Policy rates are expected to remain low with forecasts still putting the first rise in 2015. The Fed’s GDP forecast was downgraded due to adverse weather in the first quarter.

• Initial jobless claims fell 6,000 to 312,000 for the week ended June 14th.

 

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