Highlights of the summary of commentary on current economic conditions by Federal Reserve district:
- Most districts were optimistic about economic outlook
- Labor market conditions improved
- Consumer spending increased in all 12 districts
- Manufacturing increased in all 12 districts
- ‘Banking conditions improved slightly’
- Vehicle sales expanded in most districts
- ‘Price pressures were generally contained’
- Most districts were optimistic about economic outlook
- Full text here
Virtually no market reaction on the headlines but there is some good news here for the US dollar. The expansion in consumer spending and manufacturing could be a major tailwind in a pickup. There is hardly anything here to create worry but the market has been burned so many times by optimism about the US economy that it wasn’t so see an undeniable trend before piling into the US dollar.
We might be closer than we think.
Is that a dollar bull or a dollar puppy
