2 Key Takeaways: GDP and Interest Rates By: Gabriel PotterMBA, AIFA® 2015.04.29

The Federal Open Market Committee met on April 29, 2015. Below are the two key takeaways:

First, 1Q 2015 estimates for GDP just came in and they are pretty bad.  The Bureau of Economic Analysis reports GDP as +0.2% for the first quarter.  Basically, it’s as close to a recession as you’ll ever want to get.  This isn’t a big surprise to most economists, who had noted the weaker earnings trend, but it’s still a disappointment.

Second, the Federal Reserve published its latest report noting the current economic slowdown, which reduces the chances for the inevitable increase in short term interest rates in June.  The futures market still expects rates to go up this year, possibly delaying the anticipated rate hike to September.

Gabriel Potter

Gabriel is a Senior Investment Research Associate at Westminster Consulting, where he is responsible for designing strategic asset allocations and conducts proprietary market research.

An avid writer, Gabriel manages the firm’s blog and has been published in the Journal of Compensation and Benefits,...

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