Economic indicators

The U.S. current account deficit widened to $170.5 billion in the second quarter from a revised $111.5 billion gap in the previous quarter, data released Friday by the Commerce Department showed.

Jobless claims declined, but remain elevated, housing starts and building permits also slid, while manufacturing in the Philadelphia region expanded at a slower pace.

Most panelists don't expect rates to budge in the three-year projection horizon.

With a need to replenish inventories, experts expect the manufacturing recovery to continue.

Consumers’ view of the economy was less pessimistic in August, according to the Federal Reserve Bank of New York’s Survey of Consumer Expectations.

August prices climbed as the recovery from the coronavirus-induced shutdown progressed, but inflation is not a concern to most economists.

Despite a positive employment report last week, Chair Powell predicted a slow recovery with COVID-19 still not under control.

The August employment report was better than anticipated, which could impact the stimulus package being negotiated in Washington, analysts say.

Charles Evans, president of the Federal Reserve Bank of Chicago, said the economy won't be back at pre-pandemic levels until near the end of 2022.

The Fed will have to "pivot from stabilization to accommodation" during the pandemic, Fed governor says.