Although the Fed has removed “patient” from its statement, it has signaled it remains dovish due to the deceleration of the economy. Its projections have been decreased for unemployment, GDP growth and inflation. Manufacturing and housing have both been weak recently. Housing starts dropped decidedly in February, but it is difficult to gauge the effect of the record-breaking weather. Reduced energy costs have had an enormous effect on prices, which have been one of the catalysts in declining factory orders for six straight months. Econoday’s consensus is for a slight uptick in headline and core inflation for last month.
More analysis of this week’s news by Econoday’s Senior Economist Mark Rogers:
Econoday reports, available on TradingScreen’s award-winning TradeSmart EMS, provide alerts on upcoming economic announcements, and jargon-free analysis of their potential market impact. Mark Rogers, Senior Economist for U.S. markets, has over 19 years of experience with the Federal Reserve Bank of Atlanta as an economist and forecaster for national and regional economies.