Friday's gross domestic product reading fell below even the dimming hopes on Wall Street. The 1.2 percent growth ratein the second quarter combined with a downward revision to the first three months of the year to produce an average growth rate of just 1 percent.


"We're tired of talking about rate hikes when it's not going to happen for a while," Diane Swonk of DS Economics told CNBC. "I really think the Fed is sidelined until the end of the year.

Or, perhaps, longer.

Market expectations for the next Fed hike had been sliding as the release of the GDP report got closer, and they plunged afterward. The fed funds futures market Friday morning was indicating just a 34.4 percent chance of a rate rise this year, with the next move pushed out until well into 2017.

See also ZeroHedge's take, with the additional point that the consumer spending leg may be about to be kicked out...

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