Worst. Case. Scenario. Markit US Services (flash) PMI printed an impressive 57.0 (smashing 54.5 expe

Worst. Case. Scenario. Markit US Services (flash) PMI printed an impressive 57.0 (smashing 54.5 expectations), well up from January's 54.2 as combined with the Manufacturing (soft survey data) suggests, according to Markit, that GDP is growuing around 3.0% annualised. Of course both these 'surveys' print positive background check amid one of the biggest declines and series of misses in US macro data of the last few years. As Markit notes, The Fed will no doubt be encouraged by the resilience of the economy...and increasingly minded to start the process of normalising monetary policy in June."
While parts of the East coast have struggled in the face of adverse weather, other regions basked in unusually warm temperatures, boosting business above seasonal norms. Activity levels surged higher and inflows of new business boomed as a result.
Alongside the upturn signalled by the sister flash manufacturing PMI survey, the improved performance of the service sector in February means the economy looks to be enjoying yet another spell of robust growth in the first quarter.
The two PMI surveys are so far running at a level consistent with at least 3.0% annualised GDP growth. While the overall rate of business expansion has cooled from the surging pace seen in the middle of last year, growth remains buoyant and, importantly, strong enough to drive yet another month of impressive job creation.
The Fed will no doubt be encouraged by the resilience of the economy in the face of global headwinds such as the Greek and Russian crises, and increasingly minded to start the process of normalising monetary policy in June
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Tue, 02/24/2015 - 11:03 | 5822349 Osmium background check
Tue, 02/24/2015 - 12:41 | 5822686 Conax
I suspect that they are playing chicken with the recession.   They know a recession is in the offing.  They want to raise rates as a sociological statement to reinforce their credibility...but not enough to subesquently be blamed for the recession.
As soon as the recession is in print (say between August and October) they'll reverse course, followed by discussions on more QE, with those discussions' volume and publicity in direct proportion background check to the recession's apparent severity in terms of stock market, jobs, and consumer spending.
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