US Economic Update: October 2017

The effects of the recent major Hurricanes affecting the US are clearly evident in some of the economic data.

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Overview:

  • Some US activity indicators have been clearly affected by recent hurricanes – the impact is likely to be transitory and the economy remains on track.
  • The Administration and congressional Republicans took a step forward on tax cuts, consistent with a small fiscal stimulus, although it is not certain that it will be passed by Congress.
  • Inflation is expected to trend back up towards the Fed’s 2% over target, leading to further fed funds rate increases, but risks are to the downside.

For further details please see the attached document