Economics Update

It's Jobless Thursday, and initial claim hit a 3 month high, 429 K, with the 4-week moving average rising, though continuing and extended claims fell.

The numbers have been disappointing, which is not surprising, since the economy grew at an anemic 1.8% annual rate in the 1^st quarter.

The problem is that too many people in power (see Geithner, Timothy, for one) think that the economy is recovering fine because the banksters are making lots of money, so they are concerned about the deficit and inflation, as evidenced by this story with its hand wringing about inflation rising, but even though it's still well under the 2% (I would argue for 6% right now) that the Fed says that we need.

BTW, if you want to read it, here is the Federal Reserve Open Market Committee statement for you to read.