U.S. Outlook: Why the Fed will ignore signs of weakness

Posted By Scott Anderson In Economic Outlook | No Comments

The latest round of U.S. economic data releases are still falling short of economists’ expectations, which has already been reduced.

graph_surpriseindex_feb [1]Below is a brief summary of my weekly analysis, followed by a link to the full U.S. Outlook report, delivered on March 7, 2014.

Key observations:
  • 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%.

Click here to read my full report [2].

 


Article printed from Bank of the West: https://changematters.bankofthewest.com

URL to article: https://changematters.bankofthewest.com/2014/03/07/u-s-outlook-why-the-fed-will-ignore-signs-of-weakness/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2014/03/graph_surpriseindex_feb.jpg

[2] Click here to read my full report: http://gowe.st/1qfyfjZ

Submit an Idea

[contact-form-7 id="32" title="Share An Idea"]

You are leaving the Bank of the West Change Matters site. Please be aware: The website you are about to enter is not operated by Bank of the West. Bank of the West does not endorse the content of this website and makes no warranty as to the accuracy of content or functionality of this website. The privacy and security policies of the site may differ from those practiced by Bank of the West. To proceed to this website, click OK, or hit Cancel to remain on the Bank of the West Change Matters site.