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Don’t Worry Weakness is Transitory: Fed Expects a Second Quarter Rebound, Higher Equity Prices
Wednesday, April 5, 2017 22:09
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mishtalk.com / Mike “Mish” Shedlock / April 5, 2017
- The information reviewed for the March 14-15 meeting suggested that the labor market strengthened further in January and February and that real gross domestic product (GDP) was continuing to expand in the first quarter, albeit at a slower pace than in the fourth quarter, with some of the slowing likely reflecting transitory factors.
- Real GDP was expected to expand at a slower rate in the first quarter than in the fourth quarter, reflecting some data for January that were judged to be transitorily weak, but growth was projected to move back up in the second quarter.
- In their discussion of developments in the household sector, participants agreed that consumer spending was likely to contribute significantly to economic growth this year. Although motor vehicle sales had fallen early in the year and some other components of PCE had also declined, many participants suggested that the slowdown in consumer spending in January would likely be temporary.
- The slowing appeared to mainly reflect transitory factors like lower energy consumption induced by warm weather or delays in processing income tax refunds. In addition, conditions conducive to growth in consumer spending, such as a strong labor market or higher levels of household wealth, were expected to persist.
The post Don’t Worry Weakness is Transitory: Fed Expects a Second Quarter Rebound, Higher Equity Prices appeared first on Silver For The People.
Source: http://silveristhenew.com/2017/04/05/dont-worry-weakness-is-transitory-fed-expects-a-second-quarter-rebound-higher-equity-prices/
