Fed Chairman Powell in his prepared remarks suggested that faster rate hikes are likely and terminal rates are likely to be higher than previously estimated because extremely tight job market is making it difficult to cool inflation faster.
New orders for manufactured goods declined in January and fell in two of the last three months. Shipments declined following two months of increase in a row.
Durable goods orders declined in January from the previous months and excluding transportation, new orders increased 0.7% and excluding
defense, new orders decreased 5.1%. New orders increased over the last twelve months.
Pending home sales improved for the second day in a row after mortgage rates eased but sales were still down from a year ago after buyers struggled with elevated home prices.
Personal consumption expenditure price index, a watered down measure of inflation, accelerated in January. The alternative measure of inflation's rise highlighted the difficulty in moderating inflation.
The U.S. economic growth in the fourth quarter was revised lower primarily reflecting downward revision in consumer spending partly offset by upward revision to nonresidential fixed investments.
The housing starts and permits declined in January from the previous year and new home construction declined for the fifth month in a row. Home completions rose from a year ago, despite the weak housing market conditions.
The rebound in gasoline price contributed to the acceleration in wholesale price increase in January. Home prices also continued to rise at an elevated pace in the month.
The Consumer Price Index in January moderated from December but accelerated from the previous month. The index excluding food and energy also eased on an annual basis but matched the rate in the previous month.
U.S. international trade deficit soared to a record level after the goods deficit surged and service surplus decreased. Higher demand and soaring energy imports and goods from China drove the deficit higher.
Non-farm payrolls in January expanded after the hospitality and leisure industry and professional business services added jobs at elevated rates. Monthly wage growth rate was steady for the second month in a row.
The Federal Reserve slowed rate hike and warned of more increases to follow as policy makers struggle to engineer soft landing without pushing the economy into a deep recession.
Home sales recovered for the third month in a row in December but plunged in 2022 after high mortgage rates and record home prices lowered affordability for many first-time home buyers.
