US Economic outlook update - a mixed picture

Mixed signals from US economic reports are out this week. Here this week's report from Steve Peasley, president of KPP Financial. Steve believes that the economy is still very strong even without worrying about inflation. Well, at least for the moment.

Good economic numbers came out from the housing sector. New constructions were down but if you take out  the apartments part, it's definitely up... Single family homes construction was up. We just need to always keep in mind that these are backward looking economic trends.

What's more important is the growing numbers of new construction permits. Permits are always the leading economic indicator.

But what's concerning is that not all of the Federal Reserve governors agreed about the QE3. QE 3 is an 80-Billion per month pay off to banks (i.e. securities a month). Quantitative easing was supposed to be applied until the unemployment reaches a certain level and this move created a surprise for the marets and markets don't like surprises...

As always, thanks Steve for your expert analysis and reporting.

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