On the good side, economists expect growth to pick
Post# of 65629
Posted On: 04/28/2016 8:41:58 PM
Quote:
On the good side, economists expect growth to pick up later this year. First quarter growth has been a dud the last few years, only to see growth pick up for the rest of the year.
http://money.cnn.com/2016/04/28/news/economy/...t-quarter/
And inflation showed signs of life. Personal consumption expenditures, excluding volatile categories like food and energy prices, rose to 2.1% in the first quarter from 1.3% at the end of last year.
The Federal Reserve cares a lot about PCE and inflation, which has been nearly non-existent during the economic recovery post-recession. Rising inflation means the Fed may be able to justify increasing rates later this year.
The Fed acknowledged that the economy has slowed. It didn't raise interest rates Wednesday, citing low growth and that household spending had "moderated."
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