The Obama administration’s line on the economy appears to be that it has finally turned the corner and things are truly humming. And maybe so. But there are signs of trouble amid all the good cheer.
In consumer sentiment, for instance, as Reuters reports that:
U.S. consumer confidence fell more than expected in February [as] consumer attitudes fell to 96.4 from an upwardly revised 103.8 in January. The February reading was the lowest for the index since September, and was below economist expectations for a reading of 99.6 …
And what about producers?
Well, as Rich Miller of Bloomberg reports:
Tucked away in last week’s report on industrial production from the Federal Reserve was an important piece of news: Manufacturers, miners and utility companies don’t seem as optimistic as monetary policy makers are that 2015 will be a markedly better year for the economy. Industrial producers are scaling back their expansion plans for this year even as Fed officials forecast faster economic growth. Since less investment is often interpreted as diminishing confidence for future demand, the two outlooks are a little hard to square.
And, of course, Janet Yellen has said that things are not yet so robust that the Fed can begin tightening. So the stock market hits new highs, the recovery sputters on and, as the New York Times reports, Ms. Yellen tells Congress that:
“There has been important progress … However, despite this improvement, too many Americans remain unemployed or underemployed, wage growth is still sluggish and inflation remains well below our longer-run objective.”
