US: Economy to take cues from macro data - BBH

The US reports several economic reports, but what has emerged as a consensus among economists is unlikely to be changed by the data, according to Marc Chandler, Global Head of Currency Strategy at BBH.  

Key Quotes

“Specifically, a recent Wall Street Journal survey found nearly 75% of economists expect the Fed to announce its balance sheet operations in September and a December rate hike.   The FOMC minutes, among the week's highlights, may reinforce such expectations by showing concerns about the slowing of inflation, while also finding the willingness to decouple the balance sheet strategy from the more direct monetary policy.”

“Retail sales, at both the headline and GDP-component levels, likely snapped a two-month decline.  The expected 0.4% would offset those declines. Industrial output and manufacturing production appear to be weathering the slower impulses from the auto sector.  Small increases are expected.  Early readings for August from the Empire and Philly Fed surveys are unlikely to signal a material change in the trajectory of the US economy, which appears to be uninspiring but near trend.”