On Wednesday, the Federal Reserve raised short - term interest rates by 25 basis points (or 0.25 percent) after
months of a strong economy.
Not exact matches
MARKETS: The dollar held near a four -
month high against a basket
of major currencies, buoyed by the outlook for a
strong U.S.
economy and rising yields amid signs
of slowdown elsewhere, especially in Europe.
Goods exports, which reversed a slide in the first three
months of 2016 to jump by 9.6 % the first quarter
of this year, were credited for the Chinese
economy's
stronger growth.
President Xi Jinping told Politburo members last
month that China should place a
strong emphasis on financial stability as a pillar
of a
strong economy, Xinhua, the state - run news agency, reported.
The latest stats should calm some fears about the state
of the
economy, but we'll see if the job market remains
strong in the following
months as well.
The Commerce Department reported on Thursday that the
economy grew by 3.2 percent in the final quarter
of 2013, echoing the even
stronger 4.1 percent pace
of expansion in the summer
months and providing the White House with a rare bit
of good news despite dismal public approval ratings.
That was less than the third quarter's 4.1 % pace, but overall the final six
months of the year delivered the
strongest second half since 2003, when the
economy was thriving.
Growth
of the Australian
economy is being supported by a
strong external environment at present and, if anything, global economic conditions have strengthened further in recent
months.
Nonetheless, while the Fed is facing an extremely delicate task — and the job
of effectively communicating its intentions will be even more delicate — it is still our belief that the US
economy remains sufficiently
strong to be able to bear a gradual increase in short - term rates in the coming
months.
Even if the
economy were to immediately begin producing 600,000 jobs a
month — more than double the pace
of the mid-to-late 1990s, when job growth was
strong — it would take roughly two years to dig ourselves out
of the hole we're in.
The
strong rise in the currency in the first six
months of the year had been driven by investors chasing yields in the more stable
economies, in what was a deteriorating climate for the world
economy and share markets.
This strength comes against the backdrop
of a
strong U.S.
economy, posting growth for 106 straight
months, as noted by CNBC.
Although volatility returned to US equities in the early
months of the year, the country's
economy remains
strong and markets appear well placed to continue their upward trend
In the US, at the Jackson Hole summit, the Fed Chair Janet Yellen stated that the
economy is showing signs
of strong recovery and there is a valid case
of a rate hike in the weeks or
months to come.
As discussed last
month, this is a bit
of a too much
of a good thing crash all around — tax cuts into a
strong economy sending inflation and interest rates high enough to lead the Federal Reserve to (potentially) over react and raise rates too high, causing a recession and growing debt issues as the government refinances debt at higher rates, all while a tax cut reduces federal revenues.
Currently, 38 %
of consumers believe the
economy in their community will be
stronger six
months from now (compared to 35 % last
month), while only 15 % believe it will continue to weaken (compared to 19 % in December.)
Currently, only one - third
of Americans (34 %) expect their local
economy to be
stronger six
months from now, down from 38 % last
month.
«The
economy is in great shape, most local job markets are very
strong and incomes are slowly rising, but there's little doubt last
month's retreat in contract signings occurred because
of woefully low supply levels and the sudden increase in mortgage rates,» says Yun.
The U.S.
economy added 228,000 jobs in November, according to the U.S. Bureau
of Labor Statistics (BLS), another
strong month of gains and the seventh
month exceeding 200,000 jobs this year.
«Even though the
economy still seems to be choppy, from our perspective, we've seen a very
strong leasing transaction deal flow in the first few
months of this year and retailers seem to be a lot more bullish in terms
of store expansion.
«A
stronger economy could lead to a reconsideration
of this policy change if it is combined with signals in the upcoming
months that prices and wages are starting to rise faster.»