GDP Friday – Yellen Spins Us Into the Holiday Weekend

"Data dependent."

That's what the Fed has said over and over again since the minutes of the last meeting were released on 5/18.  Various Fed speakers have talked about 2 or 3 rate hikes this year – if the data supports it – and now we have the Atlanta Fed providing supporting data as they have raised their GDP Now forecast by 100% this month.  

Forget the fact that the core Durable Goods were terrible or that Auto Sales are falling off or that Consumer Comfort is at year lows or that yesterday's Richmond Fed Report showed continued contaction – the Fed doesn't measure those things.  The Fed measures whatever their Bankster owners want them to measure to come to the conclusion that makes the Banksters the most money.  See how simple it is?  

We'll see of they are right on the GDP forecast but, if they are – then a June rate hike is a lot more likely than people are thinking because, at this pace, our GDP will be over a Bazillion Dollars in a year or two if we double our growth each month.  

Call me a cynic but, to me, if you can change your forecast from 1.6% to 2.9% in 22 days – then your forecast isn't worth crap and people should stop listening to you!  

Speaking of things people shouldn't listen to:  On Wednesday, we talked about the back and forth on the Brexit issue and, just yesterday, Project Fear put out yet another release from the UK Treasury – this time aimed at seniors with claims that a Brexit would hit pensions by $440Bn. "Pensioners rely on economic growth for their security and stability, whereas leaving the EU would mean huge uncertainty," Pensions Minister Ros Altman said in an interview with BBC Radio 4 on Friday. "All serious economic forecasters agree" that "leaving will damage our economy," she said.

The Treasury has been criticized by Brexit campaigners and some analysts for overstating the consequences of Britain leaving the EU amid accusations the government is playing on voters’ fears to keep the U.K. in the bloc. The referendum, now less than four weeks away, has split the ruling Conservative…
continue reading