All Posts Tagged: inflation

U.S. Outlook: What’s behind the oil price plunge?

Scott Anderson
Chief Economist

Crude oil prices had been generally rising in 2018 before peaking at $76.24 on October 3.

Large, very clean refinery at dawn. No human activity is visible.Since then, there has been a sudden shift in underlying market dynamics. What’s behind the sharp change in trend?

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Nov. 30.

Key observations:
  • Overall, we believe the increase in oil supply rather than a decrease in oil demand is the primary driver of lower oil prices today.
  • The sudden, sharp, and sustained decline in oil prices immediately reduced the inflation expectations of bond investors.
  • Investors are now expecting lower consumer inflation over the next five years compared to early October, largely as a result of the dramatic plunge in oil and other commodities prices.
  • Bank of the West Economics expects West Texas Intermediate Crude to average $62.50 per barrel in the fourth quarter, and average just $51.50 per barrel in 2019.

Read my full report.

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U.S. Outlook: Can the U.S. consumer keep up the pace?

Scott Anderson
Chief Economist
Farmers market scene as several adults look over baskets of red, yellow, and orange tomatoes, peppers, and other vegetables.

You could say the consumer has been the engine of U.S. economic growth lately.

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Instant Analysis: August FOMC meeting minutes

Scott Anderson
Chief Economist
Facade of the Federal Reserve building in Washington DC on a sunny day.

A September rate hike is a near certainty at the next FOMC meeting. 

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U.S. Outlook: Emerging markets turmoil returns

Scott Anderson
Chief Economist
Flea market scene in Argentina, with lots of shoppers milling about.

Emerging markets turmoil returned with a vengeance this week, and it’s more than a simple “taper tantrum” this time around.

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Investment Insights: Investors go cold Turkey

Wade Balliet
Posted by Wade Balliet
Investment Strategy
Portside at Istanbul, with ships near the coast and large, historic mosue visible in the distance.

The Turkish lira is one of the worst-performing currencies over the last two years, declining over 40% during the period, according to Bloomberg data.

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