- 2 Corporate Center Drive Suite 110 Melville, NY 11747
- 877-781-7788
- 516-753-6160
- NMLS #1403
Welcome to our weekly review blog, where we delve into the significant events that unfolded during the past week. This week was marked by unexpected economic data and noteworthy Supreme Court rulings. So, let's dive in and explore the key highlights!
On Tuesday, June 27th, the week commenced with a pleasant surprise in the form of strong gains in Durable Goods Orders for the month of May. Both Durable Goods Orders and Core Durable Goods Orders surpassed expectations, rising by 1.7% and 0.6%, respectively. Forecasts had predicted a decrease of -1.0% and -0.15%, making these results particularly impressive.
While the strong numbers represent good news for the economy, the data may not be all that welcome at the Federal Reserve where voting members have raised interest rates significantly in an effort to curb a hot economy.
As a further potential sign that the Fed may still have more work to do on the interest rate front, Thursday saw a flood of data that reinforced a positive trend in the market. Initial and Continuing Jobless Claims, which are closely tied to the strength of the labor market, fell faster than analyst forecasts. Additionally, the GDP Numbers for Q1 exceeded expectations, growing at a rate of 2% instead of the anticipated 1.4%.
PCE prices, an important gauge of inflation, showed modest declines compared to previous periods but remained elevated above historical norms. Despite these declines, they currently stand at 4.6%, well above the Federal Reserve's target. While travelling abroad, Federal Reserve Chair Jerome Powell reiterated the FOMC committee's belief that two more interest rate hikes will be necessary this year. These actions aim to rein in inflationary pressures and maintain economic stability.
This week also witnessed significant Supreme Court decisions that are bound to have far-reaching implications. On Thursday, the Supreme Court struck down affirmative action admissions, making headlines across the nation.
Today, the same court ruled against the Biden administration's efforts to forgive student loans. These rulings are expected to spark intense debates and generate strong reactions from politicians and citizens alike.
If we can be confident about anything these days, its that despite the Supreme Court rulings, these conversations are far from over.
As we approach Independence Day, East Coast Capital and all its employees extend warm wishes for a safe and joyful celebration of our nation's freedoms. Next week will be shortened by the July 4th holiday, providing an opportunity for some well-deserved rest and relaxation.
Note: The views expressed in this article are solely those of the author and do not necessarily reflect the views of East Coast Capital or its employees.