General Electric is losing its place on the Dow Jones Industrial Average after more than 100 years in a move that reflects a fall in the firm's fortunes and changes to the US economy. Walgreens Boots Alliance is to take its spot on the financial index, which tracks shares of 30 companies deemed representative of the US economy. The change takes effect on 26 June.
Federal Reserve officials earlier this month suggested that another rate hike was on the way soon, while also noting several risks facing the economy, ranging from rising wage pressures to potential harm from the Trump administration's trade policies.
The 10-year U.S. Treasury yield has broken through the psychologically important level of 3%, leaving analysts contemplating what it could mean the future of asset markets and, more importantly, the global economy. The yield on the benchmark bond — which helps to set prices for debt instruments all over the world — inched past 3% on Tuesday, a level that many market players deem dangerous for investments and the economy.
With the passage of deep tax cuts late last year, annual United States budget deficits are expected to balloon over the next decade, the nonpartisan Congressional Budget Office said on Monday.
Federal Reserve Chairman Jerome Powell, pledging to strike a balance between the risk of an overheating economy and the need to keep growth on track, told U.S. lawmakers on Tuesday that the central bank would stick with gradual interest rate increases despite the added stimulus of tax cuts and government spending.
United States Federal Reserve officials grew more positive on the economic outlook, citing “substantial underlying economic momentum,” and were increasingly optimistic about achieving their inflation target, according to minutes of last month’s policy meeting.
Inflation pressures appear to be building in the U.S. economy, a prospect that is heightening anxiety about potentially higher borrowing rates that could slow economic growth. The latest source of concern was a report on Wednesday that showed a key measure of inflation rising in January by the sharpest rate in a year. The increase was led by higher prices for clothing, housing and auto insurance.
President Trump declared America “open for business” in a speech on Friday to global to political and business elites in Davos, Switzerland, while taking a hard line on trade and vowing to make commerce with other countries “fair and reciprocal.”
US economic growth slowed unexpectedly to an annualised rate of 2.6% in the last three months of 2017, the Commerce Department said on Friday. Economists had expected the rate to be 3% - the same as the three months to September.
A stronger US economy lifted American household incomes in 2016 and drove the poverty rate down to the level seen before the financial crisis. The median household income increased by 3.2% to US$59,039, rising for a second consecutive year as more people found full time jobs.