October 2019 Economic Recap
Tariffs continue to play a role in the slowdown of the global economy, with the Trump administration imposing tariffs on EU goods following the WTO’s authorization of levies based on a 15-year battle over support programs for Airbus and Boeing. Also on the trade front, China and the U.S. are continuing discussions, though much remains undecided.
The FOMC announced multiple technical measures earlier this month, including plans to expand its balance sheet by purchasing T-Bills, a move they say they will continue through next year. The Fed will also continue overnight and term repurchase agreements through January at the earliest. The Fed also announced the third rate cut of the year at its regular policy meeting, though they also indicated a pause following this cut given significant payoff from the action already taken.
The first estimate of third-quarter GDP came in at 1.9%, which was down on the quarter but still above expectations. Strength was driven by government and consumer spending in addition to residential investment and exports. Business spending and nonresidential fixed investment fell on the quarter.
For a deeper consideration of the economic data released during October, please follow the links below: