GDP forecasts have been slashed across the board for the first quarter of 2015 as sell-side institutions pare back their estimates. Citing the Atlanta Federal Reserve model, the first quarter growth estimate is approximately 1.20% due to poor weather conditions slowing business on the East Coast and the port stoppage on the West Coast that dented the flow of goods through the economy. With the revisions lower in fourth quarter numbers for 2014, this is not an unexpected shift in momentum, but may nevertheless force the Federal Reserve to redraw the interest rate policy timeline. Although positive employment figures have raised speculation that the Fed will tighten policy sooner, the recent spate of economic data points to weakening underlying economic fundamentals that must resolved. In spite of the lower growth estimates, equities rallied, led by the 0.78% gain in the Dow Jones Industrial Average.
US GDP Expected to Slow
Daily Analysis - 10/03/2015