A Dove-Shaped Taper
Five years after it began a series of QE campaigns, the Fed announced a modest pullback in its asset purchases earlier this week. Stock markets cheered the news, with most economists apparently agreeing with the Fed’s view that economic activity is expanding at a moderate pace. But is there really a fundamental improvement in economic activity?
In this context, ECRI has just completed an in-depth study based on our objective coincident and forward-looking indicators of growth, employment and inflation. We also review headline GDP and jobs data to asses if recent hopes of a stronger U.S. recovery will soon become a reality.