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Despite US Services PMI Miss, Markit Says "FOMC Should Normalize Policy Sooner"
After 3 months of somewhat surprising strength (given the background of disastrous hard data), US Services PMI dropped in April by the most since December, missing expectations by the most on record. Against serial extrapolators' expectations of a rise to 58.9, PMI fell to 57.8 with cost inflation jumping to a six-month high and the biggest rise in the jobs index suggests to Markit that "the FOMC to consider starting the process of normalising monetary policy sooner rather than later at its meeting later this week.."
A miss - but under the covers Market is excited...
Greater optimism regarding future business activity, alongside sustained growth of incoming new work in April, contributed to robust job hiring across the service economy. The latest increase in payroll numbers was the steepest since June 2014.
“The improvement in second quarter economic growth, rising price pressures and strong job creation signalled by the PMI surveys adds to pressure on the FOMC to consider starting the process of normalising monetary policy sooner rather than later at its meeting later this week.”
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No rate normalization in my lifetime.
The Bernank
Gos ahead, raise rates. I fucking dare you.
There might be no rate normalization all the way but with the first 25 bps rise, the market will get a heart attack.
I don't believe we will ever see fed funds above 1% again. Anything above that iverst the curve and crashes the system.
Markit knows just enough about economics to compete with Barry's foriegn policy...
Markit 'shock and awe' LOL!!!
In other news, WTFRLY must be taking a shit, as he's very late to this thread with his blog pimping.
Killer inflation coming!
Blame the Fed
There is no inflation
Blame the Fed
They have successfully created it for decades but are having trouble in the "new economy". The debt keeps on growing tic, tic. tic.....
Yes there is no inflaton, and yes you are not supposed to know that everything you buy is shrinking in size
Exactly. The one that cracked me up the most is how tiny the candy bars have become in the bags of Halloween candy. They have become so pathetic that it's almost not worth the effort to unwrap.
Stagflation is the newest retro dance craze all the kids are doing it; inflation in everything the 99% need to get by (healthcare, education, hedonic miniaturization, etc), zero inflation in anything the 99% might benefit from in any way, and complete debasement of any spending power they may have had the forethought to stuff in a matress before the cash controls clamp down.
"Normalize" - Ha!
There's no way to go back to "normal" without completely destroying the asset markets.
It will be hilarious to watch Pension funds and Insurance companies as they struggle to explain that there is no there there - and that thier entire industries were notheing but a fraud and a scam all along.
To a nation of confused and angry pension and life insurace "beneficiaries" - Obama - or maybe Hillary will have to get out there and explain"
"Sorry folks, you got tricked fair and square and now its time to move on" - HA!!
No worries, the Pension Benefit Guaranty Corp. is waiting in the wings to nationalize every last one of those things.
As for insurance, I'm sure they've got a scam with Uncle Warren all set up and waiting for the sheeple to cry out to their congress critters for relief.
Didn't know "Markit" was in the business of giving macro economic advice. Talk about impartial, unbiased, unrigged institution.
Anything for a few eyeballs.
Also in the US communism doesn't work. Laws of nature don't exclude the US. Really.
"FOMC to consider starting the process of normalising monetary policy sooner rather than later at its meeting later this week.”
Prue fantasy! The un-fed can not return to "normal" not that it ever was! The market place is completely distorted beyond any return to anything close to normal.
It will go down in a ball of flames first!
MarkIt: "Bring Da Pain!"
https://www.youtube.com/watch?v=T0BlXy3Roj4
Raise rates on the free money which is the only reason the S&P is not around 600 today....yea sure go ahead and do that LOL
.
QE4, QE5.....QE20.
Fed's printing mania continues.
"Normalize" with a $4Trillion slush fund....LOL
Isn't the Dallas Fed manufacturing coming out today? Didn't see it on Bloomturd but then again I can only take them in small dosages.
The way things look today, it may be considered completely normal in a few more months of the Obama experiment!