Quote:
Originally Posted by IowaHawkeyeChief
I disagree to some extent as the Fed also tempered future increases to 25 basis points, maybe higher, but ruled out 75. First quarter GDP may have been effected mostly by trade and inventories, but the economy is showing signs that high ticket items, and housing, both leading indicators are heading down. Housing starts are down for the third month in a row. Also, with stimulus funds drying up and inflation, specifically food and energy, reducing purchasing power, we definitely are at risk for an economic pullback. I think the fed realized while the economy is not terribly bad, there are indications it starting to weaken, and the negative GDP tempered their original glide path...
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The Fed wants the economy to weaken, dude. That's the only way they're going to slow the labor market and temper inflation. Don't kid yourself otherwise.
There's a reason why rates are now unchanged from pre-Fed yesterday.