We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now


It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

Dancing on the grave of the economy

Share On Facebook
share on Linkedin

Last week we received discouraging news from the U.S. economy.


First, regarding the labor market, the number of job openings in the country fell in July to its lowest level in 28 months, at 8.827 million, down from 9.165 million the previous month, while unemployment rose to 3.8%.

The country’s GDP figures for the second quarter were revised to 2.1%, from 2.4% previously. Surprisingly, however, the markets reacted positively. Why might this be?

In short, investors believe that slowing economic growth will push down consumer demand and, as a result, the inflationary monster will loosen its grip. Thus, investors expect that the Fed no longer needs to raise interest rates.

The only problem is that inflationary risks persist, especially due to high energy prices: on August 15, 2023, the average retail price of gasoline in the country reached $3.86 per gallon, up 7% from a month ago, due to high demand and shrinking inventories.

Natural disasters could also bring the problem of rising prices back to the table. For example, Hurricane Ida, which hit the Florida coast, could worsen the situation due to supply chain disruptions and infrastructure damage.

Citigroup analysts caution that “two Category 3 or higher hurricanes hitting the U.S. coasts could massively disrupt supplies not just for weeks, but for months.” No wonder the DXY dollar index remains above the 104 level, and 10-year Treasury yields near 4.2.

That being said, contrary to the statements made by Bostic from the Federal Reserve Bank of Atlanta, suggesting that the Fed’s policy is sufficiently restrictive, the battle against inflation may continue.

Overall, even if the tightening of monetary policy is halted, there are few reasons to expect robust market growth, given the indications of an economic slowdown suggested by the economic calendar data.


CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

Support: +44 (0) 203 8794 460 |