The chart above doesnt seem to be that worrying but for the fact that expectations for Q2-2010 GDP were for more than 2% GDP growth.....this is now down to 1.9%. Unemployment is also likely to remain high. Chad Evans, Fed Chief for Chicago feels that the risk of a double dip have risen but this is not yet the likely scenario. Read more...I had an informal lunch with some academics and fund manager veterans last week to test the waters.
It is timely in that we have Fed Chairman Bernanke Bernanke, in his Aug. 27 speech to central bankers and economists in Jackson Hole, Wyoming, indicating that the US economy is not growing as fast as expected and added that the Fed was ready to step in to avert a recession. This apparently caused a rally in the US markets last Friday. The slowdown in US GDP growth happens to coincide with the ending of fiscal stimulus packages. This means that domestic consumption is not stong enough to offset the absence of fiscal spending but domestic consumption is still growing albeit modestly.
The chart above doesnt seem to be that worrying but for the fact that expectations for Q2-2010 GDP were for more than 2% GDP growth.....this is now down to 1.9%. Unemployment is also likely to remain high. Chad Evans, Fed Chief for Chicago feels that the risk of a double dip have risen but this is not yet the likely scenario. Read more...
The chart above doesnt seem to be that worrying but for the fact that expectations for Q2-2010 GDP were for more than 2% GDP growth.....this is now down to 1.9%. Unemployment is also likely to remain high. Chad Evans, Fed Chief for Chicago feels that the risk of a double dip have risen but this is not yet the likely scenario. Read more...
