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