Hotter-than-expected first quarter growth is likely to revive the debate within the Fed about the direction of policy.
Hotter-than-expected first quarter growth is likely to revive the debate within the Federal Reserve about the direction of policy, but Fed officials are likely to be content to stay on the sidelines for now, particularly with inflation so low.
"It's going to be tough for them to start their engine. It's partly economics. It's partly low inflation. The puzzle is why strong growth doesn't lead to more inflation.That's part of it. The other part of it is the political winds are very unfavorable to rate hikes right now," said Chris Rupkey, chief financial economist at MUFG.
Treasury yields initially jumped on the GDP report, as investors sold, but the fact that inflation looked weaker and the fact transitory factors of inventories and trade boosted growth dampened some of the enthusiasm. Bonds quickly reversed and prices were bid higher. Yields, which move opposite price, moved lower with the 2-year touching 2.26%.
"So much for the perpetual pessimism. You've got a contribution from a lot of things. The consumer only contributed 0.8 to growth and the consumer spending is on the upswing headed into q2, so that's a good thing," said McCarthy. Mark Cabana, head of U.S. short rate strategy at Bank of America Merrill Lynch, said there is a risk the market is expected too much dovishness from the Fed chairman.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
BTS Is Now The First Korean Act To Do This On The Hot 100 Singles ChartBTS has sent a number of singles onto the Hot 100, but they've never placed more than one onto the listing at the same time.
Lire la suite »
Sen. Elizabeth Warren's 'Game of Thrones' hot take: She's Daenerys and Trump is CerseiSen. Elizabeth Warren (D-Mass.) took time out from campaigning for the U.S. version of the Iron Throne to review last week's season premiere for The Cut. Her take? 'It’s about the women.' (Also, the Iron Bank.)
Lire la suite »
Here's the only chance Main Street has to get in on the red-hot IPO marketMain Street only has a small chance to get in on the red-hot initial-public-offering market. Here's how.
Lire la suite »
Egypt’s economy thrills investors, but locals are strugglingFor all the hot money flooding into Egypt, bricks-and-mortar investment is scarce
Lire la suite »
Golden State Killer trial could put anti-death-penalty Newsom in hot water with votersIf anyone deserves the death penalty, it’s the Golden State Killer, columnist George Skelton writes. The suspect in the case is accused of raping more than 50 women and charged with 13 murders.
Lire la suite »
From ‘Annabelle’ to Chucky: How horror became summer’s hot ticketHorror isn't just for Halloween: With the release of 'Annabelle Comes Home,' 'Child's Play,' 'Ma' and more, Hollywood's scary movies are taking over the summer frame.
Lire la suite »
White House economic advisor Larry Kudlow says Fed should still cut rates despite 3.2% GDP growthThe U.S. economy is off to its best start to a year since 2015 and White House economic adviser Larry Kudlow believes it means the Federal Reserve should cut interest rates.
Lire la suite »
This Startup Making Cloud-Connected Security Camera Systems Reached A $540 Million Valuation In 3 YearsStartup Verkada has raised $40 million at a $540 million valuation just three years after launch due to hot demand for its un-hot product: video security systems for businesses and schools.
Lire la suite »
This Startup Making Cloud-Connected Security Camera Systems Reached A $540 Million Valuation In 3 YearsStartup Verkada has raised $40 million at a $540 million valuation just three years after launch due to hot demand for its un-hot product: video security systems for businesses and schools.
Lire la suite »
Fed done raising rates; cut by end-2020 growing more likely: Reuters pollThe U.S. Federal Reserve is done raising interest rates until at least the end o...
Lire la suite »