Federal Reserve Bank of Dallas

Despite “solid” growth in gross domestic product in the past year, it will be difficult for GDP to rise more than 1.5% to 1.75% on a longer run basis.

A disappointing read from the ADP employment report overshadowed a positive read on the service sector, and the markets upped expectations for rate cuts through next year.

U.S. interest rates are “in the right place” and don’t need to be lowered, although weak inflation merits close watching, according to Robert Kaplan, president and CEO of the Federal Reserve Bank of Dallas.

The last day of the month brings a host of economic indicators, which showed much good news for housing and labor, strong consumer confidence, but mostly softer manufacturing conditions.

Texas service sector activity “growth softened in March."

Texas factory activity growth, as measured by the production index, “continued to expand in March,” but at a slower pace than in February.

Federal Reserve Bank of Dallas President Robert Kaplan is sounding a warning bell on U.S. corporate debt, arguing it could pose risks to the economy should growth sour.

Texas service sector activity “accelerated in February,” according to business executives responding to the Federal Reserve Bank of Dallas' Texas Service Sector Outlook Survey, as the revenue index climbed to 19.2, from 14.9.

Texas factory activity growth, as measured by the production index, “continued to expand in February,” but at a slower pace than in January.

Negative interest rates could be harmful for U.S. banks, limiting their usefulness as an emergency tool in an economic downturn, said Federal Reserve Bank of Dallas President Robert Kaplan.