Data Dulge Brings Good News

The first week of May brought a deluge of economic data, including the April jobs report, key surveys on business activity, and some important readings on inflation. Add in a Federal Reserve (Fed) policy meeting, and it’s fair to say that the most important week of economic data in May is already behind us. Looking at these reports together, the economy still appears to be in an economic sweet spot, producing solid growth but not enough to cause us concern about an overly aggressive Fed. Rates will still push higher at a moderate pace and it’s natural for financial conditions to tighten as we move later into the economic cycle, but as long as these are driven by steady economic growth with a minimal build-up of excesses, we expect the economic expansion to continue largely uninterrupted.

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