August 29, 2016

MIXED?:

Solid U.S. consumer spending boosts prospect of Fed rate hike (Lucia Mutikani, 8/29/16, Reuters)

U.S. consumer spending increased for a fourth straight month in July amid strong demand for automobiles, pointing to a pickup in economic growth that could pave the way for the Federal Reserve to raise interest rates this year. [...]

Low inflation, however, suggests the U.S. central bank could wait until its December policy meeting before raising borrowing costs.

"This report is a mixed bag for the Fed. While the consumer sector is continuing to advance solidly, progress towards the Fed's inflation mandate has stalled," said Michelle Girard, chief economist at RBS in Stamford, Connecticut.

The disconnection of economic growth and inflation is over thirty years old now.
Posted by at August 29, 2016 2:05 PM

  

« AND WE'RE MORE LIKELY TO SIGN A TRADE DEAL WITH THEM THAN THE EU: | Main | OTHER THAN THAT, RUNNING A RACIST CAMPAIGN MADE PERFECT SENSE...: »