The always optimistic Atlanta Fed said the U.S. economy grew at a blistering 0.6% in the first quarter. This morning the inflation data suggested a reading well below 2% was likely for the foreseeable future and the never ending engine of growth, China, is enduring a wretched cap ex climate, whereby a mere 30 odd percent of firms are expanding.
Yet, our Fed is afraid of the economy overheating, declaring inflation the real enemy that must be defeated by impromptu interest rate hikes.
The 0.6 percent annualized pace for U.S. gross domestic product seen for the first three months of 2016 was slower than the regional Fed’s prior estimate of 1.4 percent on March 24, the Atlanta Fed said on its website.
Earlier Monday, the Commerce Department said domestic consumer spending edged up 0.1 percent after a downwardly revised 0.1 percent gain in January.
It also released an advance report on U.S. trade in February, which showed a trade deficit of $62.86 billion. This compared with a $62.23 billion trade gap in January.
My position is as clear as the day is long. I hope you took advantage of the Exodus trials and join us in our quest for financial excellence. I am long TLT, SPY and short XLE. I really do like that pair trade, as it gives me broader market exposure, while betting against the weakest links.
You have less than 1 month’s time to sell and board the ark. There is a storm coming and very few are going to make it through.
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It only took them four days to cut their forecast more than half of what it was. Seriously, how could the economy change that quickly??? It’s laughable.
I have never been this nervous about a FED board before. I fully expect Nurse Ratched to appear behind Yellin at the next meeting.
Don’t forget that’s the REJIGGERED gdp from a few years ago. Probably was 0