Today's mostly mundane Fed announcement was offset by highly encouraging GDP news

Jay Soloff

Argonath Financial

Today's mostly mundane Fed announcement was offset by highly encouraging GDP news. The Fed, as expected, is lowering its asset purchases by another $10 billion per month. Asset purchases are on pace to end by October. The Fed boosted its view of the US economy, with inflation moving closer to the central bank's long-term objective. However, Yellen and the Fed continue to see slack in the labor market, particular in regard to low wages. Meanwhile, GDP came in at 4% - much higher than 3.1% projected by analysts. The big jump in GDP comes after a 2.1% decline in the previous quarter. The surprising jump was driven by consumer spending, which climbed 2.5% from Q1, and a huge increase in durable goods purchases. As 70% of GDP is made up of consumer spending, this is clearly very good news for the US. (VIEW LINK) (VIEW LINK)


Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter