From the @wsj article, “Why Is the Federal Reserve Always Surprised by Inflation? The central bank owes the public an explanation—and a serious effort to correct its flawed model.” #economy #markets #centralbanks #econtwitter #federalreserve pic.twitter.com/9pXVdePJAr

Per below, the whole US yield curve shifted up in reaction to the data (see prior post), including the 2-year which traded above 5% as markets pushed to December the expectation of the first rate cut by the #FederalReserve. (Amazing to think that, just four months ago, #markets… pic.twitter.com/gmZDG1xxGU

🇺🇸 US Economy: Disappointing Spring🌸 📉Real #GDP in Q1 2024 ✅+1.6% q/q ✅+3.0% y/y 🛒Consumer +2.5% 🏘️Resid +13.9% 👩‍💻Biz invest +2.9% 🔻Inventory -0.4pt 📦Trade -0.9pt (strong imports⚠️) 🏦Gov +1.2% 📉PCE #inflation ⤵️Headline 2.6% y/y (-0.2pt) ⤵️Core 2.9% (-0.3pt) pic.twitter.com/DGRqKIzOh3

Hawkish Fed repricing extends: Traders push back the timing of the 1st Fed rate cut to Nov/Dec after hotter than expected Q1 Core PCE. pic.twitter.com/nhO5k5ZOvn