BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
(615) 591-0611 mbartlett@argenttrust.com
Announced this morning, the first reading of GDP growth indicates a 4.1% increase in the second quarter 2018. This is the first quarterly reading above 4% since 2014. The strength was driven in part by personal consumption, which comprises nearly 70% of the economy. Also in the report, the core PCE price index, which excludes food and energy, increased 2.0% in the quarter, again near the stated inflation target by the Federal Reserve. A strong report, with inflation readings near targets, suggests the Federal Reserve will maintain their moderate interest rate increases for the time being, assuming inflation remains in check. Following the report, equity futures are slightly higher and bond yields are slightly lower heading into the market open.
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