Will the Fed claim today’s core retail sales miss as another ‘transitory’ data indicator as they prepare to announce next rate decision?
As the Federal Reserve begins their two day FOMC meeting on June 14, a major economic indicator was published today which showed that core retail sales declined for the month of May, and was the lowest print since January of 2016.
This data also coincides with the first quarter announcement of only a .7% increase to the GDP, and the growing number of retailers and restaurants that are shuttering their doors by the thousands here early in 2017.
Headline retail sales tumbled 0.3% MoM in May, the biggest drop since January 2016 (and all the weather-related malarkey that was blamed on).
Core retail sales also dropped the same…
Retail sales less autos fell 0.3% in May, notably worse than the expectation of a 0.1% rise.
- Retail sales forecast range -0.3% to 0.3% from 79 economists surveyed
- Retail sales rose 0.4% in April
- Retail sales fell to $473.808b in May vs $475.009b in April
- Retail sales ex-auto dealers, building materials and gasoline stations unchanged in May
- Retail sales ‚Äėcontrol group‚Äô unchanged m/m in May
The breakdown show a big tumble in Electronics and appliance stores, along with gasoline prices. – Zerohedge
Ironically, the Fed’s Chairman Janet Yellen has continuously parroted that monetary policy would be predicated on data dependency, but two months ago spun the bad economic data to simply be ‘transitory’, and just an anomaly. ¬†And it will be very interesting to see what the FOMC decides to do during their meeting today, and on their interest rate decision tomorrow in light of the fact that the economy no longer validates their rhetoric of recovery, or that it is functioning well.
Falling job numbers, declining retail sales, nearly negative GDP, and a consumer base that is in debt at levels not seen since just before the 2008 financial crisis are all factors that should be taken seriously by the Federal Reserve, otherwise whatever shred of credibility they may have remaining will be completely lost if they try to spin the narrative tomorrow with more propaganda of a sound economy.
Kenneth Schortgen Jr¬†is¬†a writer for The Daily Economist, Secretsofthefed.com,¬†Roguemoney.net, and Viral Liberty, and hosts¬†the popular youtube podcast on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.