This is all a bit of a puzzle. It will depend obviously on how quickly these areas can be repopulated, and also you've got the positive of reconstruction spending and the fact that that will create jobs. |
This will no doubt give protectionists in Congress some ammunition as the mid term elections approach. |
Today's inflation figures will reinforce the belief that the Fed only has one or two more interest-rate hikes up its sleeve before it rests. The lack of any significant upward pressure on inflation should help persuade the Fed to raise rates no higher than 5 percent. |
We previously feared growth could dip below 2 percent. |
While the drop in gasoline prices makes these sales figures look bad, it is of course good news for spending in real terms, which is what really counts. |