U.S. Outlook: Why the Fed will ignore signs of weakness
The latest round of U.S. economic data releases are still falling short of economists’ expectations, which has already been reduced.
- We expect FOMC to continue $10 billion monthly taper in March.
- Slowdown in the services sector can’t be totally blamed on weather.
- Economy can’t break out of recent malaise without pickup in service sector hiring.
- Watch economic projections at March FOMC for clues on change in asset purchase program.
- Our forecast for second half of 2014 remains 3.2%.