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].


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

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[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

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