REPORT
By Gülbin Yıldırım
U.S. letter, week beginning Jan. 23

- Historic inauguration week in the U.S.

The inauguration of Donald Trump was the single most important event last week.

Moments after being sworn in as the 45th president of the United States, Trump reiterated the America-first message that catapulted his campaign to the most powerful office in the world.

“From this day forward, it’s going to be only America first, America first,’ he said from the carriage entrance of the Capitol building.

"Every decision on trade, taxes, immigration, foreign affairs will benefit American workers and families," he added.

While Trump was waving to his supporters during the Presidential Parade from the Capitol to the White House, the new administration announced a number of statements on the economy, energy, military and foreign policy.

“To get the economy back on track, President Trump has outlined a bold plan to create 25 million new American jobs in the next decade and return to 4 percent annual economic growth” the announcement titled “Bringing Back Jobs And Growth” read.

 

- Fed Chair Yellen's messages

Federal Reserve Chair Janet Yellen’s remarks of Wednesday and Thursday evening were among the other important headlines last week.

The Federal Reserve expects to raise rates three times a year for the next two years as the U.S. economy moves closer to full employment and 2 percent inflation, Yellen said on Wednesday.

With the Fed approaching its goals “a natural question is whether monetary policy has fallen behind the curve. The short answer, I believe is ‘no,’ ” Yellen added.

Thursday, Yellen said she “was losing a little bit less sleep” than she had over past years worrying about the economy.

“I feel the U.S. economy is in a reasonably good position and there is a little bit less to lose sleep about now than there was in 2008, 2009 and 2010,” she explained.

 

- Data releases

According to data released last week, industrial production expanded by 0.8 percent in December - the strongest performance in the last two years.  During the same period, the Consumer Price Index increased by 0.3 percent monthly and 2.1 percent yearly. Core inflation rose 0.2 percent on a monthly basis and 2.2 percent on an annual basis in December. Housing starts rose by 11.3 percent in December, beating market expectations of a 9 percent increase.

 

- New week

This week all eyes will be on the new administration.

Trump said Sunday he will begin renegotiating the North American Free Trade Agreement when he meets with the leaders of Canada and Mexico.

A central promise of Trump's campaign was that he would revamp the 23-year-old trade pact.

In addition, Trump will meet British Prime Minister Theresa May on Friday. The meeting will be closely watched by the U.S. and European markets.

The fourth quarter GDP figures to be announced on Friday are also among important developments this week. Other data for the week include durable goods orders, new and existing home sales, and the PMI Manufacturing Industry Index.

23 Jan,2017

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