Tuesday, 23 February 2010

Chicago Fed index up

There was mixed news on the US economy on Monday. Reuters reports:

Economic activity rose sharply in January, further evidence the recovery is gaining ground, but manufacturing in Texas slipped in February.

The Federal Reserve Bank of Chicago on Monday said its gauge of the national economy rose to +0.02 from -0.58 in December, the second time in three months it was positive.

Also on Monday, however, the Federal Reserve Bank of Dallas said its Texas monthly manufacturing index slumped to -0.1 in February from 8.3 in January.

The Fed appears likely to keep interest rates low anyway.

On Monday ... San Francisco Fed President Janet Yellen, speaking in San Diego, said the U.S. economy still needs ultra-low interest rates since inflation is "undesirably low," and growth is expected to be sluggish for several years.

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