On March 29, Fed Chairman Janet Yellen spoke at the Economic Club of New York to give a little more insight to the central bank’s future plans for monetary policy. And in what was a mish-mash of contradictory points provided by the Fed Chair, where in one instance she praised the economy as being good while shortly after called for caution due to uncertainty in that same economy, it appears that data announced from the Atlanta Fed on Monday has invariably thrown all future rate hike possibilities in the crapper.
“the Atlanta Fed will have no choice but to revise its Q1 “nowcast” to 1.0% or even lower,which would make the first quarter the lowest quarter since the “polar vortex” impacted Q1 of 2015, and the third worst GDP quarter since Q4 2012. It means one-third of already low Q1 GDP growth has just been wiped away.”
It was “even lower.”
Moments ago the Atlanta Fed which models concurrent GDP, slashed its Q1 GDP from 1.4% (and 1.9% last week) to a number not even we expected: a paltry 0.6%, which would match the “polar vortexed” GDP print from Q1 2015.
Should the number drop even more, will be the lowest since Q1 of 2014 when the US economy suffered its most recent contraction of nearly -1%. – Zerohedge