Scoreboard: Late Fed jitters

Wall Street reversed gains in the last hour despite strong GDP figures and indications the Fed will further delay tapering.

US GDP growth ended up being stronger in the June quarter than expected, at 1.7 per cent when 1 per cent was anticipated. Now that’s better than nothing, but it’s still below trend. What’s more interesting though is that the analysis and commentary around these figures is so positive. I mean, growth is still below trend, remember, and the broad spread of the discussion is really quite positive. This is a great turnaround from the days past and very welcome because it is the right way to think.

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