A look at the US economy
The economy is headed into the summer with strong momentum. This momentums is propelled by a manufacturing rebound, coupled with consumers who are eager to go shopping and on vacation, regardless of the high price of gas. In some areas, luxury goods are actually selling better than lower-end merchandise. This follows what happened in May when the nation’s retailers posted their biggest gain in 16 months.
The central bank will meet again on June 27th and 28th. This information will be discussed and more than likely, the interest rate level will be maintained at 5.25%. It has been at this level for a year now. Unfortunately, Wall Street was hoping that this rate would be cut, but it will not be cut because there are signs that the economy is now emerging from a nearly year-long sluggish spell.
This is a big change from what happened in the first 3 months of this year. It was at this time that economic growth nearly stalled, registering an annual pace of just 0.6%, which is the worst that it has been in over 4 years. However, it now looks as though it is headed for a rebound.
