US Economics Update Will Trump capture the FOMC? President Trump’s attempt to fire Fed Governor Lisa Cook looks set to go the courts, which will determine the extent and limits of the administration’s ability to influence monetary policy. It remains... 26th August 2025 · 5 mins read
US Economics Update Why is the US tariff rate not higher? The actual tariff rate on US goods imports was only 9% in June, far below most estimates at the time of about 15%. This reflects a shift in the composition of imports towards countries and goods with... 20th August 2025 · 4 mins read
US Economics Update Is the economy already benefitting from an AI boom? Investment in both computer hardware and software surged in the first half of this year, which could be a sign that the AI boom is now boosting economic growth. Most of that hardware is imported... 7th August 2025 · 3 mins read
US Economics Update Integrity of economic data safe for now President Trump’s firing of the Bureau of Labor Statistics (BLS) commissioner marks another troubling step in his administration’s pressure campaign against Federal institutions. Still, we think a... 6th August 2025 · 4 mins read
US Economics Update Will healthcare continue to boost payrolls growth? There are several headwinds to healthcare & social assistance employment that suggest it is unlikely to continue growing at its recent rapid pace, although we doubt payroll gains in the sector will... 6th August 2025 · 4 mins read
US Economics Update Get used to weaker payrolls growth The July Employment Report was a taste of what is to come, with payroll gains set to be much weaker in the coming quarters than has been the case in recent years. This is the new normal amid the... 5th August 2025 · 4 mins read
Global Economics Update New US tariff regime still not the end of the story President Trump’s latest flurry of tariffs implies that the US effective tariff rate will rise to about 18%, from 2.3% last year. That is a little higher than we assumed and so presents modest... 1st August 2025 · 5 mins read
US Economics Update Powell far from convinced about September rate cut Fed Chair Jerome Powell left open the possibility of a September rate cut in his comments following the FOMC’s July meeting, but put much more emphasis on the still solid labour market and stressed... 30th July 2025 · 3 mins read
US Economics Update JOLTS static as firms await greater tariff certainty The JOLTS data for June show a labour market waiting in suspense for the Trump administration to settle on a final arsenal of country-specific tariffs. While the federal layoff rate remains roughly... 29th July 2025 · 3 mins read
US Economics Update What happens if Trump fires Powell? The market reaction yesterday provided a taste of what might be to come if President Trump followed through his threat to fire Fed Chair Jerome Powell, with the dollar, equities and short rates likely... 17th July 2025 · 5 mins read
US Economics Update Rise in continuing claims not a big cause for concern The pace of the increase in continuing jobless claims would have to accelerate significantly to present a risk to our forecast that the unemployment rate will only edge higher this year. 15th July 2025 · 3 mins read
US Economics Update Immigration crackdown hitting labour supply After stemming the inflow of unauthorised immigration over the Southwest border, the Trump administration now appears to be gradually ramping up the number of detentions and removals. This crackdown... 9th July 2025 · 4 mins read
US Economics Update Weaker dollar not a significant inflationary threat A weaker dollar should not compound the upward pressure on goods prices from tariffs too greatly given that the greenback remains strong by historical standards and, in any case, the pass-through of... 7th July 2025 · 3 mins read
US Economics Update Budget reconciliation + tariffs will leave deficit unchanged With the House of Representatives today passing the Senate’s bigger version of the budget reconciliation, the Republicans appear to have met President Trump’s timeline – to have the bill reach his... 3rd July 2025 · 3 mins read
US Economics Update JOLTS shows little sign of labour market weakness The JOLTS data suggest the labour market remained healthy in May, with job openings and private sector hiring rising, and layoffs low. However, the sharp rise in accommodation and food services job... 1st July 2025 · 3 mins read
US Economics Update Fed remains on sidelines amid heightened uncertainty The Fed will remain on the sidelines for some time, waiting to see what impact tariffs will have on price inflation. We suspect that lingering fears of a more persistent impact will persuade the Fed... 18th June 2025 · 3 mins read