LEI & CEI

Fed Playing With An Economy On Fire?

Sep 17, 2024 2 min read paid

Today, the Atlanta Fed's GDPNow tracking model raised Q3's real GDP growth rate to 3.0% (saar) from 2.5% following the release of solid retail sales and industrial production reports for August (chart). Leading the way was an upward revision in real consumer spending growth to a whopping 3.7% from 3.5%. The increase in real spending on capital equipment was raised to 11.

Ed Yardeni

The Economic Week Ahead: August 19-23

Aug 18, 2024 3 min read paid

The week ahead is light on economic data. However, there will be lots of news coming out of Jackson Hole, Wyoming from Thursday through Saturday as many of the world's central bankers gather for their annual meeting near the Grand Teton mountain range. Most important will be Fed Chair Jerome Powell's speech on Friday at 10:00 a.m. (EST). Many other central bankers from the

Ed Yardeni

Stock Market Rotates To Interest-Rate Sensitive Sectors

Jul 18, 2024 3 min read paid

The bull market in stocks has been quite volatile in recent days as it rotates and broadens. The triggering event was a better-than-expected June CPI report on Thursday, July 11. Since then, the financial markets priced in a 100% probability of a Fed rate cut in September. Investors responded by rotating out of the S&P 500's Magnificent-7 into the S&P 1493 (i.e., 1500

Ed Yardeni

The Economic Week Ahead: July 15-19

Jul 14, 2024 3 min read paid

The economic week ahead will include updates on industrial production and business sales of goods, as well as retail sales. The upshot is likely to be another all-time high for June's Index of Coincident Indicators (Thu), as confirmed by S&P 500 forward earnings per share which climbed to another new record high during June (chart). When profits grow, the economy grows. During the current earnings reporting

Ed Yardeni

The Week Ahead: May 13 - 17

May 12, 2024 3 min read

The week ahead is jampacked with economic indicator releases. The big ones are for inflation, retail sales, and production. They may be somewhat stagflationary on balance, showing inflation remains too high while economic growth is slowing. Nevertheless, we still expect to see inflation moderate with solid economic growth over the rest of this year. Here are a few observations on this week's key indicators: (1) CPI. The Cleveland

Ed Yardeni

Bond Prices Go Drip, Drip, Drip

Aug 17, 2023 2 min read paid

The 10-year US Treasury bond yield rose above 4.00% at the beginning of August on better-than-expected economic data. It rose above last year's peak of 4.25% today, trading most recently at 4.32%, following the release yesterday of July's FOMC minutes, which strongly suggested that solid economic growth might keep inflation above the Fed's 2.0% target unless the Fed continues to

Ed Yardeni

Leading & Coincident Economic Indicators Are Contradictory

Jun 22, 2023 2 min read paid

The Index of Leading Economic Indicators (LEI) peaked at a record high during December 2021. It dropped 0.7% m/m in May and declined for the 14th month in a row, but there’s still little evidence the US is headed toward recession. Indeed, the Index of Coincident Economic Indicators (CEI) edged up by 0.2% m/m during May to yet another record high (chart). The Conference Board,

Ed Yardeni

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