Economic Week in Review 02 May
- Case-Schiller Housing Price Indices (both 10 and 20 City) fell around 2%. Prices fell notably in Phoenix, Las Vegas, and San Francisco with continuing trouble in Cleveland, Detroit, and Chicago.
- Consumer Confidence reflected the biggest one-month jump in four years. The report suggested that consumers see stable price conditions ahead.
- GDP contracted more than expected for the first quarter.
- EIA crude oil inventory report showed another weekly build (increase) in supply. Continuing builds in energy supply reflect continued lack of energy demand in the broad economy.
- FOMC Announcement kept target rate unchanged and maintained its plan for "quantitative easing". The FOMC statement included: "The Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn. The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. The Federal Reserve is facilitating the extension of credit to households and businesses and supporting the functioning of financial markets through a range of liquidity programs. The Committee will continue to carefully monitor the size and composition of the Federal Reserve's balance sheet in light of financial and economic developments." Fed's Balance Sheet is expanded by $2 Trillion and the Treasury deficit spending increases by $2 Trillion.
- Personal Income fell in March.
- Continuing Jobless Claims increased. Initial Jobless Claims declined.
- Consumer Sentiment improved suggesting that consumers may think the worst is past.
- ISM Manufacturing index reflected a slowing rate of contraction with new orders improving and backlog orders improving.
