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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