3 replies to this topic

[redfoliage2]

April durable goods orders grew 0.6 percent, slower than estimate. What will be the spin now? Rate cut? No way. The Fed said clearly it's main focus is on the inflation which has got over the Fed's comfort zone: 2%. But real inflation is much, much higher though.

Edited by redfoliage2, 24 May 2007 - 07:49 AM.

[relax]

Exactly any spin will take place on inflation figures

Fed don't want to cut rates

so when consensus is that rates will be cut, they will throw in a too high CPI or PPI

April durable goods orders grew 0.6 percent, slower than estimate. What will be the spin now? Rate cut? No way. The Fed said clearly it's main focus is on the inflation.

[selecto]

These sorts of statistics - jobs, orders, etc. - were designed to measure the health of a smokestack economy, which the US is no longer. They may still be traded upon by the players who always need catalysts, valid or not. Even should one trust the government's data, it is much less descriptive of the state of the economy than it used to be. I think one could just watch retail and dining and be fairly hip.

[jjc]

These sorts of statistics - jobs, orders, etc. - were designed to measure the health of a smokestack economy, which the US is no longer. They may still be traded upon by the players who always need catalysts, valid or not. Even should one trust the government's data, it is much less descriptive of the
state of the economy than it used to be. I think one could just watch retail and dining and be fairly hip.

Exactly Selecto! Thx for saying out loud.

rlx, I think your concept has merit, I just don't think the actual info in the reports are the driver.

Edited by jjc, 24 May 2007 - 08:37 AM.