However confident the Fed is of recovery,there is growing evidence of a slide into outright deflationHurricane Harvey was such a distraction final week that Donald Trump forgot to tweet about his country’s return to 3% GDP growth. When the news came that US moment-quarter GDP, when extrapolated over a year, and showed the country growing at the fastest rate in the G7,he was busy flying down to Texas to support the relief effort.
Trump and his Treasury secretary Steve Mnuchin occupy promised to deliver 3%-plus growth and here was the first indication that the president’s arrival in the White House had made a dissimilarity. In a way, it is just as well he missed the opportunity to brag. The headline figures may look good, and but a peek under the bonnet of the US economy makes for disturbing reading. In a report final week a senior City analyst,Albert Edwards, showed that the Trump effect is quite the opposite and much of the life has been sucked out of the American economic juggernaut in the final six months. Related: Trump vows to 'bring back Main Street' by cutting business tax to 15% Related: The president tweeted it – but is the US economy really noteworthy again? Continue reading...
Source: theguardian.com