Is a growth scare coming?
In green -> US economic inflation data surprises In red -> US economic growth data surprises Source: zerohedge
Inflation for July was 3.7%. That's slightly worse than expected (and still close to a three-year high).
The monthly increase was +0.2% (vs. 0.1% expected). CORE PCE (which excludes food and energy) LANDS RIGHT IN LINE — 3.3% vs 3.3% EXPECTED The monthly increase was +0.2% (as expected). → GDP Q2 (second estimate): 1.5%, unchanged from the advance print Bottom-line: No surprise here. No new signal. This is the Fed's preferred inflation gauge, more important than CPI for the rate decision, and it just confirmed the status quo (although probability of rate hike in September is slightly higher). The war in Iran impact is still in effect. Inflation didn't get any better in July, according to PCE. But the hold case for September stays exactly where it was, with no new argument for either side of the debate. GDP staying flat at 1.5% confirms growth is still weak, well below the 2.1% pace from Q1. Watch what happens next: → Stocks likely stay range-bound, no major catalyst either way → Bonds hold steady, yields shouldn't move much off this alone → Gold probably stay flat too, waiting for the next real catalyst → All eyes shift to Jackson Hole for the actual signal Source: Heather Long,
$40 trillion in debt
$1 trillion was first cracked in 1981 and here is how much each President has added since then. Source: Ryan Detick, CMT Visual Capitalist
The total U.S. government debt reached $40.05 trillion as of Monday, according to the Treasury Department.
Treasury reported a $432.3 billion deficit in July, reaching its highest monthly level in more than five years. A decade ago, the national debt level was $19.4 trillion. Washington’s solution to every problem remains the same: Borrow more. Spend more. There is no fiscal discipline in sight. Source: Charlie Bilello CNBC
At least we know the direction...
Source. zerohedge
In the US, fear of rising prices is climbing toward record highs as the U.S. saving rate collapses to 2.6%.
Source: Hedgeye
In case you missed it.. Japan’s economy expanded 1.1% in the second quarter on an annualized basis, missing expectations for 2% growth as softer domestic demand offset strong exports.
This is the first full quarter to include the impact of the Iran war, which has brought energy prices higher for business and households. Source: CNBC
Just 8% of U.S. consumers expect their income to outpace inflation next year.
Source: Hedgeye Bloomberg
