US GDP: The GDP number covers an odd quarter which was deceivingly strong over the first couple of months due to weather distortions
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We asked Craig Erlam from Oanda to sharew his view on the surprising print of the US GDP.
FXMAG.COM: The US GDP release is outstanding. Please share some of your thoughts. It seems that Fed Atlanta has rightly predicted the print, does it mean the release won't affect Fed decision?
The second quarter onwards is likely to be very different, something that should soon become apparent in the monthly data
Craig Erlam (Oanda): The GDP number covers an odd quarter which was deceivingly strong over the first couple of months due to weather distortions. The second quarter onwards is likely to be very different, something that should soon become apparent in the monthly data. Unfortunately for the Fed, that evidence is unlikely to come in time for the May meeting, weakening the argument for a pause. The GDP data feels quite dated, as it often does, and it likely won't be a reflection of the year as a whole.
