One for the doves
Angry Bear Spencer England commented on Tim Duy’s post…
Very good wrap-up. There is virtually no evidence that the economy is breaking out of the past few years very sluggish growth.
One For the Doves, by Tim Duy: The March employment report came in pretty much in line with expectations. Nonfarm payrolls gained by 192k, and January and February were both revised higher. If you can discern any meaningful change in the underlying pace of economic activity from the nonfarm payrolls numbers, you have sharper eyes than me:
Worth reading the whole piece.
It’s likely “QE – infinity” has become increasingly inefficient in forcing money into circulation. It’s sort of like putting more water into a cloth bag, making the bag bigger and bigger, with little water seeping out. Even with QE winding down, the bag is getting bigger, and that also concerns the Fed – how to wind down the $4 trillion of asset purchases? It’s uncharted waters.