Increasing Interest

The US economy expanded at just 1.2% in 17Q1, better than an earlier estimate of a dismal 0.7%, on the back of better consumer and business spending and slightly less contractionary government spending than initially thought. Given the lousy data and weakening inflation, the Fed is backpedaling. Don’t believe them. They will raise rates next month, and with 17Q2 GDP looking to be above 3%, again in fall. No diggity!