Comments in the Fed monetary policy report:
- Q2 data signal slower GDP growth on exports and inventories
- US economic activity continued at a 'solid pace' in early 2019
- Notes recent soft readings on inflation but says they appear to reflect transitory influences
The 'transitory' comment would be big if it came from Powell or a core Fed member. That's something they stopped saying about six weeks ago and it's odd that it appears in this report. That could be because this is more of a compendium. Or they could be trying to send a soft signal ahead of Powell next week.
More:
- Repeats FOMC will 'act as appropriate' to sustain expansion
- Signs of weaker credit standards on new leveraged loans
- Labor market continued to strengthen, wage gains moderated
- Business investment spending appears to have decelerated sharply this year
- Consumer sentiment remains strong and borrowing conditions
- US and global tariffs have been 'material' to slowdown in international trade
- Data suggests 'moderation' in Q2 GDP due to weak business investment and a slowdown in global trade flows
