Economic data from Q2 indicates that growth in US economic activity is continuing to improve.
As far as the labour market there is concerned, the unemployment rate has eased slightly, but still reflects a relatively high number, as expected.
Household spending is showing signs of recovering slowly, while fixed investment in businesses has also risen.
The recovery in the new housing market is very slow.
The tight fiscal policy is still hampering economic growth, although this negative effect is waning.
Inflation has been running below the Fed’s long term objective and the good news is that the outlook seems to be benign.