David Dierking

This isn't the 3% number that suggests a booming economy, but it's also not indicative of an imminent recession.

Even though the Fed continues its repo operations at the rate of about $50B+ every day, I think a 1% GDP number gives the Fed just enough reason to cut rates again this year. Maybe as early as the September meeting but more likely in December.

The latest CPI and PPI readings for December just add fuel to the Fed's case that the economy needs more loose policy in order to pick things up again.

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