Economy

Resilient, but Narrow

Private demand is strong, unemployment is low and consumers are still spending. And yet hiring has nearly stalled, real incomes have barely grown and an outsized share of GDP growth came from capital investment. Key Takeaways * Real GDP grew 1.5% annualized in the second quarter, while private domestic demand

Federal Reserve

The Fed Cut Its Statement in Half. What It Removed Matters More.

Key Takeaways * The statement was cut in half. The first two Warsh-chaired statements average 113.5 words, 55% shorter than Powell’s final eight. * Forward guidance took the hit. All 24 of 24 recurring Powell-era reaction-function and guidance phrases disappeared from both Warsh statements. * The minutes shift