The US economy looks like it is about a month away from a full recovery from the VirusCasedemic’s impact on the GDP. And economist Stephen Moore warns of inflation proving to be a storm cloud on an otherwise sunny Summer outlook.
“We have some storm clouds that are forming, and a big one is this inflation threat,” Moore said at the weekend. “We have to take it seriously.
“The Fed and Biden have to be very alert to: We don’t want to see this get out of control.”
The Biden administration and the Fed to “do something about about impending inflation” Mr. Moore says.
“We’re seeing big increases in gasoline prices; we’re seeing big increases in food prices, meat prices, produce prices; lumber prices are rising; used car prices are rising; airline tickets are rising in prices.
“If we have a continuation of the inflation we’ve seen over the last month, we’re talking about 9% or 10% inflation. Now, I hope that doesn’t happen, but it’s about time the Fed and the Biden administration do something about it.“
here is a sunny side of the economic revival street, which is being driven by the COVID-19 vaccines helping to settle the unrest of the global coronavirus chaos.
“It’s one of these good news, bad news stories,” Mr. Moore said. “The good news is that the market is booming. We’re getting jobs back at a record pace. Businesses are reopening. I think it’s a great story; I love it.
“I think it’s largely attributable to the vaccine, and that COVID is pretty much behind us.”
The US GDP is on pace to return to pre-pandemic Trump administration marks roughly by the end of June.
“The economy by next month – by my projections and others, as well will be 100% recovered, which is pretty amazing in terms of our GDP,” he concluded. “We will be producing as much goods and services starting in June as we were back in January of 2020, and that’s a remarkable performance. Both Trump and Biden deserve credit for that.”
Tuesday, the benchmark US stock market indexes finished at: DJIA -81.52 to 34312.46, NAS Comp -4.00 to 13657.20, S&P 500 -8.92 to 4188.13, the Russell 2000 underperformed with a 1.0% decliner
Volume: Trade on the NYSE came in at 89ed.M/shares exchanged
HeffX-LTN’soverall technical outlook for the US major stock market indexes is Bullish to Very Bullish in here.
- DJIA +12.1% YTD
- Russell 2000 +11.7% YTD
- S&P 500 +11.5% YTD
- NAS Comp +6.0% YTD
Looking Ahead: Investors will receive the weekly MBA Mortgage Applications Index Wednesday
Have a healthy day, Keep the Faith!