This page has been archived and commenting is disabled.

Despite US Services PMI Miss, Markit Says "FOMC Should Normalize Policy Sooner"

Tyler Durden's picture




 

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...

 

 

As Markit concludes,

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.”

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 04/27/2015 - 09:59 | 6033732 Dr. Engali
Dr. Engali's picture

No rate normalization in my lifetime.

 

The Bernank

 

 

Gos ahead, raise rates. I fucking dare you.

Mon, 04/27/2015 - 10:05 | 6033746 Aknownymouse
Aknownymouse's picture

There might be no rate normalization all the way but with the first 25 bps rise, the market will get a heart attack.

Mon, 04/27/2015 - 10:07 | 6033754 Dr. Engali
Dr. Engali's picture

I don't believe we will ever see fed funds above 1% again. Anything above that iverst the curve and crashes the system.

Mon, 04/27/2015 - 10:13 | 6033776 Stoploss
Stoploss's picture

Markit knows just enough about economics to compete with Barry's foriegn policy...

Markit 'shock and awe' LOL!!!

Mon, 04/27/2015 - 10:17 | 6033797 NotApplicable
NotApplicable's picture

In other news, WTFRLY must be taking a shit, as he's very late to this thread with his blog pimping.

Mon, 04/27/2015 - 10:03 | 6033738 JRobby
JRobby's picture

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.....

Mon, 04/27/2015 - 10:06 | 6033750 Max Damage
Max Damage's picture

Yes there is no inflaton, and yes you are not supposed to know that everything you buy is shrinking in size

Mon, 04/27/2015 - 10:11 | 6033769 Dr. Engali
Dr. Engali's picture

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.

Mon, 04/27/2015 - 10:23 | 6033821 GMadScientist
GMadScientist's picture

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.

 

Mon, 04/27/2015 - 10:07 | 6033752 Madcow
Madcow's picture

"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!!

 

Mon, 04/27/2015 - 10:16 | 6033789 NotApplicable
NotApplicable's picture

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.

Mon, 04/27/2015 - 10:08 | 6033758 madbraz
madbraz's picture

Didn't know "Markit" was in the business of giving macro economic advice.  Talk about impartial, unbiased, unrigged institution.

Mon, 04/27/2015 - 10:11 | 6033770 NotApplicable
NotApplicable's picture

Anything for a few eyeballs.

Mon, 04/27/2015 - 10:12 | 6033772 Space Animatoltipap
Space Animatoltipap's picture

Also in the US communism doesn't work. Laws of nature don't exclude the US. Really.

Mon, 04/27/2015 - 10:13 | 6033779 wmbz
wmbz's picture

 "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!

Mon, 04/27/2015 - 10:18 | 6033801 GMadScientist
Mon, 04/27/2015 - 10:28 | 6033837 SheepDog-One
SheepDog-One's picture

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

Mon, 04/27/2015 - 10:36 | 6033859 hungrydweller
hungrydweller's picture

.

Mon, 04/27/2015 - 10:34 | 6033861 yogibear
yogibear's picture

QE4, QE5.....QE20. 

Fed's printing mania continues. 

Mon, 04/27/2015 - 10:40 | 6033873 venturen
venturen's picture

"Normalize" with a $4Trillion slush fund....LOL

Mon, 04/27/2015 - 10:42 | 6033877 valley chick
valley chick's picture

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.

Mon, 04/27/2015 - 10:54 | 6033911 MFL8240
MFL8240's picture

The way things look today, it may be considered completely normal in a few more months of the Obama experiment!

Do NOT follow this link or you will be banned from the site!