Retail sales and productivity show economy firing on all cylinders
WEEKLY MARKET COMMENTARY |
A U.S. economy, flush with additional disposable income via a $1.5 trillion tax cut, sustained strong job creation and solid demand for consumer credit, is firing on all cylinders. The strong July increase in retail sales and the pickup productivity to 2.9 percent in the second quarter of the year should affirm the path of monetary policy at the Federal Reserve ahead of its September meeting where it will likely lift the policy rate by another 25 basis points to 2 to 2.25 percent.
Following the data deluge, it would appear that Q3 2018 gross domestic product will arrive above 3 percent.