If the incoming data remain relatively soft, including the inflation data, the Fed will take a pass in August, ... Even if they do raise rates, it may well be the end of the tightening cycle, which is very good news for the stock and bond markets.
There is good financial-market news everywhere you look in this report.
U.S. consumers are feeling the benefits of higher incomes and are spending more to reflect their good moods, ... Buoyed by record confidence, income growth, and a super-tight jobs market, the consumer is showing no signs of slowing and should continue to propel the U.S. economy.
In a vibrant economy, you will always have some prices rising and some falling. That's a good thing, and that's what seems to be happening at this stage.
The big dip in inventories is a good sign if we are looking for a glimmer of hope here. Maybe we are at a stage where production can pick up again.
The economy is in very good shape and people don't realize it. We really do have low inflation and low unemployment, and the economy has been growing at a rate of 3 percent or better since the last recession.