Atlanta Fed’s Cuts Growth Forecast for US Economy

The U.S. economy is on track to grow 0.9 percent in the third quarter after a bigger-than-expected widening of the trade gap for goods in August, the Atlanta Federal Reserve’s GDPNow forecast model showed on Thursday.

This was a much slower rate from the regional Fed bank’s prior estimate of 1.8 percent on Monday, the Atlanta Fed said on its website.

The advance August trade reading, which showed a deficit of $67.187 billion which was the largest since March, led the regional Fed’s program to estimate a drag of 0.9 percentage point on U.S. growth, which was 0.7 point bigger than the previous estimate on Monday.

Via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza