The Economy: What Have We Learned from the Second Quarter?

The second quarter turned out to be something of a disappointment. Output was expected to grow at nearly a double-digit pace for some time as the quarter evolved, but came in at a 6-1/2 percent rate—a little different from the first quarter. This is illustrated in the chart below produced by the staff of the … Continue reading The Economy: What Have We Learned from the Second Quarter?

The Economy: Lots of Demand, Not So Much Supply

The June establishment survey jobs report showed gains of 850 thousand new jobs, following increases averaging half that amount over the previous two months. It was hailed as good news. Furthermore, new claims for unemployment insurance have been declining over recent weeks—more good news. We should note, however, that 190 thousand of the 850 thousand … Continue reading The Economy: Lots of Demand, Not So Much Supply

The Economy: Will Inflation Be Contained?

The pickup in inflation in recent months has spurred worries about whether we are entering an uncomfortable new era beset by large price increases. The chart below illustrates that core inflation (which excludes volatile food and energy prices) has spiked recently. For nearly a decade before the pandemic, core inflation ran at a 1-1/2 to … Continue reading The Economy: Will Inflation Be Contained?

The Economy: Greater Strains Have Become Evident

The recent news on the economy confirms that the labor market continues to tighten, even though 7-1/2 million fewer people were employed in May than at the onset of the pandemic. Strains in the labor market are holding down gains in employment and growth in output and placing upward pressure on inflation. Indeed, hiring problems … Continue reading The Economy: Greater Strains Have Become Evident

Podcast – Live With Glatt Consulting Group, Inc.

https://www.youtube.com/watch?v=ARYv4j_4yy0 In this podcast Tom Glatt, Jr. and Matt Griffiths (of Glatt Consulting Group) dive into economics, in particular what to expect in terms of inflation and interest rates. Dr. Thomas Simpson joins as a special guest. Dr. Simpson spent most of his career at the Board of Governors of the Federal Reserve System in … Continue reading Podcast – Live With Glatt Consulting Group, Inc.

The Economy: What Can Slow This Train?

The recent news on the economy, especially on the labor market, is confirming that a head of steam is building. Fortunately, the upbeat news has extended to the sectors hit hardest by the pandemic (owing importantly to fear and governmental restrictions)—notably, hotels, restaurants and bars, entertainment, and airlines. As noted in previous commentaries, the economic … Continue reading The Economy: What Can Slow This Train?