More on the US Economy: Fodder for the City of Coral Gables
August 24, 2010 Leave a comment
These comments Gavyn Davies of the Financial Time suggests that there are many signs of danger for a sluggish economy and greater pressure on the central bank (Federal Reserve) to expand the money supply and the economy.
I am becoming increasingly concerned about the extent of the slowdown which is now underway in the US economy, a trend which has not yet been fully recognised by the Federal Reserve. Admittedly, some decline in the growth rate was always inevitable at this stage of the cycle, because the large boosts to growth stemming from the upswing in inventories and from fiscal stimulus were certain to lose momentum about now. But the pick up in more sustainable sources of growth, notably consumers’ expenditure and capital investment, has so far been more anaemic than I had hoped, and the improvement in the labour market may be going into reverse…