New Normal

Last week, Q2 GDP was upwardly revised to a still-anemic 1.4% from 1.1%. Two measures of consumer confidence rose, with one hitting its highest level since 2007. Moreover, the Fed’s favorite inflation indicator rose by one-tenth of a percent in August to 1.7%, its highest level since 9/14, first-time claims for unemployment remain at or near post-recession lows, and consumer spending is OK. The economy remains uninspiring but decent.