Last week I posted a glowing assessment of the US economy from Mark Zandi, Chief Economist at Moody’s Analytics:
US economy – “There is no denying it: among the best performing economies in 35+ years”
In that post I warned:
perhaps the FOMC should take the foot off the accelerator, or least lighten its touch
And here we are.
On Friday we got astounding jobs numbers out of the US, the headline was higher than the highest estimate!
US non-farm payrolls data due imminently – the critical key ranges for estimates to watchWhat is the distribution of forecasts for the US NFP?
(as a ps. if you aren’t reading such posts from Giuseppe and I prior to significant US economic releases you are going in blind)
Forexlive Americas FX news wrap: US jobs report is strong. USD, yields and stocks rise
After the report, Zandi reiterated his view on the solid US economy:
And, echoing my warning from last week that the Fed should take its foot off the accelerator, a cascade of bank analysts have trimmed their calls for a 50bp rate cut at the November FOMC meeting to 25 now:
JPMorgan now sees the Fed cutting by 25 basis pointsBank of America have done similar, looking for 25bp in November
ps. Coming up on Thuirsday this week, at 8.30am US Eastern time, are the latest CPI readings for the US economy. Another critical data point. I’ll have more to come on this separately.
This article was written by Eamonn Sheridan at www.forexlive.com.
