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)
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