Fed On Course

The leading indicator for the chemical industry has declined for two consecutive months, another sign that the economy may be heading for slower growth. However, there caution should be used when interpreting the latest calculation of the indicator. A substantial drop in the equity price of the chemical industry in May and early June was partially responsible for the indicator’s poor performance. Since that time, equity markets have improved. But, other components of the indicator also exhibited some weakness. Industrial production in the chemical process...

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