Monday 14 May 2018

Stocks rise as US economy “not overheating” yet

US stocks rose last week, with the Dow Jones Industrial Average rising 2.3 percent to mark its longest winning streak in 6 months.

The rally in stocks has taken place despite geopolitical and inflation concerns.

However, Peter Coy at Bloomberg wrote that the US economy is not yet overheating.

Is the U.S. economy overheating? Yes and no. There are plenty of inflationary bottlenecks, and not only in the labor market...

On the other hand, the bottlenecks aren’t yet causing high inflation across the economy, which would require the Federal Reserve to speed up its interest rate hikes...

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