US Economy

Stock Market Oblivious To Weak Economic Data

Sep 3, 2025 3 min read

The S&P 500 rose today despite a batch of weak economic indicators over the past two days. Investors perceive that bad news is good news if it increases the chances of a Fed rate cut on September 17. Indeed, the odds of that happening are now 97.6%, according to the CME FedWatch Tool. That's a sure thing. We've been at 40% and are

Ed Yardeni

Is Fed About To Stimulate A Hot Economy?

Aug 28, 2025 3 min read

The bull market in stocks is making everyone who owns stocks richer. Gallup reported that 62% of Americans were invested in the stock market at the end of 2024 (chart). That's the highest since the end of 2008. We think the bull market is having a significant positive wealth effect on consumers who own equities, more than offsetting the debt effect on them of rising credit delinquencies. At

Ed Yardeni

Waiting For The Chair To Speak

Aug 21, 2025 3 min read paid

Stock and bond prices have been marking time over the past couple of weeks, waiting for Fed Chair Jerome Powell to speak tomorrow at 10 a.m. at the Jackson Hole Symposium. Meanwhile, today's batch of economic indicators supports our view that a Fed rate cut may not be warranted at the September 16-17 meeting of the FOMC if the other indicators released in the coming days also

Ed Yardeni

Still Banking On A Resilient US Economy

Aug 6, 2025 3 min read paid

It's a light day for economic news. Stock prices are drifting higher today because the Q2 earnings reporting season is going well, with very few exceptions. Notwithstanding the weakness of the latest employment report and the two surveys of purchasing managers, in manufacturing and non-manufacturing industries, stock investors are still betting on the resilience of the economy since it is continuing to deliver solid earnings. We are betting

Ed Yardeni

Investors May Be Gaining Confidence In the Resilience of the US Economy

Jul 24, 2025 2 min read paid

The four-week moving average of weekly initial unemployment claims provides a real-time indicator of the labor market (chart). It has been improving recently as the four-week average of jobless claims has been falling. Employers may be less concerned about the possible adverse impact of Trump's tariffs on the economy and on their companies. They should also be gaining confidence in the economy's resilience as validated by

Ed Yardeni

The Roaring 2020s: Six Years of Resilience, So Far

Jul 10, 2025 3 min read paid

The economy won't let us down. Despite numerous crises, real GDP has remained recession-resistant since the Covid lockdown during the first half of 2020. That's almost six recession-free years notwithstanding the pandemic, the Russian invasion of Ukraine, the tightening of monetary policy, the war in the Middle East, and Trump's Tariff Turmoil. Despite the five crises, it really has been the Roaring 2020s so

Ed Yardeni

IN 11 CHARTS: Fed Remains On Hold, But Still Leans Towards Easing

Jun 19, 2025 5 min read paid

President Donald Trump has been calling on Fed Chair Jerome Powell to lower interest rates. The Fed chair has been the object of intensifying schoolyard jabs from the President. "We have a stupid person, frankly, at the Fed," Trump told reporters following the Fed's stand-pat decision on Wednesday. "Am I allowed to appoint myself at the Fed? I'd do a much better job

Ed Yardeni
William Pesek

Not Much Stagflation Today

May 15, 2025 4 min read

Earlier this year, US Treasury Secretary Scott Bessent said that he and President Donald Trump were focusing on the 10-year Treasury bond yield as a key metric for economic health, rather than the Fed's short-term interest rate. He stated, "He and I are focused on the 10-year Treasury," indicating a strategy to manage borrowing costs through fiscal policy rather than pressuring the Fed to cut rates.

Ed Yardeni
William Pesek

US Economy Is Tariffied

Apr 30, 2025 3 min read paid

President Donald Trump's Tariff Turmoil (TTT) is certainly upsetting global trade relations and confusing financial markets. This is all having an effect on the US economy, as evidenced by today's Q1 GDP report. The S&P 500 fell sharply in the morning when the Bureau of Labor Statistics (BLS) reported that real GDP fell 0.3% (saar) (chart). By the end of the day, the

Ed Yardeni

REPRINT: 'The Protectionist Road To Depression.' Déjà Vu All Over Again?

Mar 28, 2025 20 min read

💡This is a timely reprint of a September 9, 1985 Topical Study by Edward Yardeni titled "The Protectionist Road To Depression." The original with charts can be found here. It is very relevant to today's debate over the trade policies of the Trump administration, which is scheduled to announce reciprocal tariffs on most of America's major trading partners on April 2. Will they retaliate

Ed Yardeni

Economic Growth Seems To Be Picking Up

Feb 10, 2025 3 min read paid

Bearish stock market narratives have been pervasive since early 2022. They are becoming more so now with each headline coming out of Washington. Duties, deportations, duties, and de-bureaucratization (the four "Ds") can have a shock-and-awe effect. But financial markets broadly have been unperturbed because the US economy continues to be rock solid. Then again, reining in the budget deficit and trade deficit is no easy task. President Donald

Ed Yardeni
Eric Wallerstein

A Bunch Of Cool & Colorful Charts

Jan 9, 2025 3 min read

I. US FINANCIAL MARKETS The bull/bear ratios have dropped sharply over the past couple of weeks (chart). From a contrarian perspective that's a bullish development for the US stock market. The US bond yield has been increasing while the ratio of industrial to precious metals commodity prices has been falling since 2022 (chart). This unusual divergence might suggest that bond investors are increasingly concerned about the long-term

Ed Yardeni
Eric Wallerstein

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