The Fed's Latest

"The economic outlook had softened somewhat and a number of members saw the risks to the outlook as having shifted to the downside.

The unemployment rate was generally expected to remain noticeably above its long-run sustainable level for several years, and participants expressed concern about the extended duration of unemployment spells for a large number of workers
."

Consumer borrowing fell $9.1 billion in May following a $14.9 billion decrease in April. Non-government employers added just 83,000 jobs in June.

Sales at U.S. retailers fell in June for a second month, indicating the pace of economic recovery moderated heading into the second half of 2010. Purchases decreased a more-than- projected 0.5 percent following a 1.1 percent May drop.

The business sector is generally strong, with fat profits, lean balance sheets, and improved, if not stellar, demand.

“The bridge to a stronger consumer is the hiring that businesses should be doing but are not because the near future is too cloudy
.” - Stephen Stanley, chief economist at Pierpont Securities LLC.

The Nattering One muses... No recovery in sight and a major disconnect between the soon to fall off a cliff business sector and the overall economy.

What Mr. Stanley fails to connect is the supposed "stellar demand" with no jobs. When will these Wall Street Ass Clowns get a clue?

Get ready Naybobs, the worst is yet to come.

Comments

Unknown said…
how much longer can they squeeze the rates lower? Can "the worst to come" be accompanied by another rush to 'safety' of the treasuries? Repeat of 2008 or will we see something different this time around