How much stronger the second quarter will ultimately be won't be revealed until the end of July, and even that will be only a preliminary estimate. Some early forecasts point to present levels of growth near "potential" for the economy, somewhere around 3% GDP. In light of how little slack in resource utilization was achieved after a year of approximately 2% growth, faster GDP growth -- and rising resource utilization -- isn't the way to trim already-stubborn inflation.
Inflation concerns are evident around the world; the European Central Bank raised rates a quarter percentage point this week, setting their key interest rate at 4%. Opportunities in other bond markets are drawing off investor dollars, adding more firmness to U.S. interest rates.
Go Hurley Group - Sugar Land, TX
Thats pretty scary... Look how much they predict it will grow!
Good post.
Jun 14, 2007 09:43 AM
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