U.S. Review
What Was That Noise?
• Since Chair Yellen’s comment a few weeks ago that recent price jumps were “noisy,” the discussion about Fed policy has been dominated by concern about a perceived complacency on the part of policy makers. A relatively tame CPI report this week may not completely quell that concern, but it removes some urgency from it.
• It was a big week for housing with three indicators released—builder sentiment, residential construction activity and home sales. All three came in better than consensus estimates. Is the long-awaited housing market recovery finally kicking in to
gear?
Global Review
Several Speeds Global Growth: Slow, Slower & Neutral.
• The story from the global economy has not changed much during the past several quarters with a very weak performance by the Eurozone and slowing economic growth in the developing world. As the Eurozone is the largest market for Chinese exports, it is no wonder that the Chinese economy has been reflecting this weakness in its economic releases.
• is, once again, taking advantage of its closeness to the U.S. market for growing its economy.
Read the full report: Economic Research