Thawing Out

The year got off to a cold start in the U.S., with many regions experiencing unusually freezing temperatures and precipitation. February has brought relief in both the weather and in economic reports.

Recent readings suggest the economy is making slow and steady progress. Inflation and employment did not reach feared extremes, but still leave room for improvement. Income tax refunds may support consumption in the near term, while the push for affordability policies may give households a more lasting tailwind. Policy uncertainty has not abated, but feels less disruptive.

Following are our thoughts on the U.S. economy.

KEY ECONOMIC INDICATORS