GDP Lays an Egg. Interest Rates Higher
By: Tim McPartland,
The release of the 1st quarter GDP numbers were softer than anticipated at a measly +.2%. Of course it was the weather (or maybe it wasn’t), but as always there are at least 5 excuses–one of these days the reason will be simply that the economy is generally just pretty lousy (at least for the ‘have nots’).
Interest rates have shot up the last couple of days as the market awaits the FOMC statement this afternoon. It is hard to understand how they would have a hawkish statement given the recent soft economy, but one can be certain that the softness will be blamed on the weather.
We are sitting tight waiting to see what happens–it could be a bit of a wild day.