U.S. economic growth will be “sluggish” through the middle of next year, when it will return “to a sustained expansion,” according to Federal Reserve Bank of Philadelphia president Charles I. Plosser, who also predicted inflation “will remain above the level I view as consistent with price stability, before diminishing thereafter.” “Over the next several quarters I expect the economy to experience somewhat sluggish growth, primarily due to weakness in residential construction,” Plosser said at the University of Rochester yesterday, according to prepared text of the speech released by the Fed. “But I anticipate that by mid-2008, economic activity will be returning to near trend growth.”He said the economy “demonstrated its resilience” in the face of the subprime mortgage crisis, with gross domestic product up almost 4% despite that and weakness in auto sales. The unemployment rate is virtually unchanged in the past year, despite a decrease in average monthly new job creation.Despite the economy’s resilience, fourth-quarter GDP growth is expected to slow significantly, to around 2.5% year-over-year. Plosser said that is “slower than the 3% growth rate I was expecting when I spoke to you last year, but it is a respectable showing considering the prolonged weakness in residential construction, the high price of oil, and the financial market’s problems.”
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Despite higher yields, muni to UST ratios remain rich. Ratios look "progressively richer" moving into the five- to 10-year part on the curve, with the 10-year spot "still far more attractive in taxables versus tax-exempts," J.P. Morgan said.
11h ago -
The growing federal debt level may pressure lawmakers to retract or reduce the tax-exemption for munis to generate revenue, some market participants argue.
11h ago -
It's a time of change, challenge and opportunity in the infrastructure and P3 space, Patrick Harder said.
April 17 -
The meeting was attended by trade organizations, MSRB board leadership, Finance Committee members and MSRB senior staff.
April 17 -
The Federal Emergency Management Agency is asking for an additional $9 billion for this year in hopes they don't run out of funds in August as they're currently slated to.
April 17 -
The SEC won its case against Richard Ganci and Richard Tortora of Capital Markets Advisors over conflicts of interest present in their fee arrangement in connection to a $119 million offering for the City of Rochester, New York.
April 17