Last week’s economic news continued to signal a booming U.S. economy. In summary, the NFIB’s Small Business Optimism Index rose to its second-highest all-time level of 107.8; the Consumer Price Index (CPI) for May, often a sign of inflation, rose 2.8% over the last twelve months; and Federal Reserve officials elected to raise rates a quarter of one percentage point to keep the economy from growing too quickly. The Fed’s Board of Governors also signaled for an extra rate hike for 2018.
Last week, several key indicators indicated cooling in the US economy. Primarily led by consumer-focused indicators, other softening indicators included small business optimism, which hinted at decreasing confidence of an improving economy. Inflation also ticked up, but the increase was largely driven by plunging wireless services prices in the year-ago period.