U.S. economic growth in the fourth quarter was revised lower in the third and final estimate, reflecting slower consumer spending increase and a decline in international trade.
The Federal Reserve revised its key lending rate range by 25 basis points and reassured that the U.S. banking system is "sound and resilient." The Fed also lowered its economic growth estimate and revised higher its inflation estimate for 2023.
Existing home sales rose for the first time in 13-months in February and median price dropped. Despite the elevated mortgage rates and near record prices, home buyers stepped up with all-cash purchases averaging near 18% of all purchases.
Payrolls expanded at a strong pace in February, reflecting tight labor market conditions as businesses in leisure and hospitality, retail trade and government added positions but wage gains moderated.
Job openings eased in January but stayed near recent high as available jobs outpaced workers. Record quits in 2022 also suggested increasing turbulence in the labor market and worker confidence in mobility.
The U.S. trade deficit edged slightly higher in January from December but dropped from a year ago after energy imports declined and capital goods exports rose.
Fed Chairman Powell in his prepared remarks suggested that faster rate hikes are likely and terminal rates are likely to be higher than previously estimated because extremely tight job market is making it difficult to cool inflation faster.
New orders for manufactured goods declined in January and fell in two of the last three months. Shipments declined following two months of increase in a row.
Durable goods orders declined in January from the previous months and excluding transportation, new orders increased 0.7% and excluding
defense, new orders decreased 5.1%. New orders increased over the last twelve months.
Pending home sales improved for the second day in a row after mortgage rates eased but sales were still down from a year ago after buyers struggled with elevated home prices.
Personal consumption expenditure price index, a watered down measure of inflation, accelerated in January. The alternative measure of inflation's rise highlighted the difficulty in moderating inflation.
