According to the Financial Post, U.S. economic growth slowed sharply in the fourth quarter as weak business spending and a wider trade deficit offset the fastest pace of consumer spending since 2006.
The slowdown, which follows two back-to-back quarters of very strong growth, is likely to be short-lived given the enormous tailwind from lower gasoline prices. Most economists believe fundamentals in the United States are strong enough to cushion the blow on growth from weakening overseas economies.
Even with the moderation in the fourth quarter, growth remained above the 2.5% pace, which is considered to be the economy’s potential. Economists had expected the economy to expand at a 3% rate in the fourth quarter
Joining the broadcast to discuss the economy, bond prices, the Fed and housing is Brent Nyitray, Director of Capital Markets at iServe Residential Lending.
Brent is responsible for managing iServe’s origination pipeline and Ginnie Mae securitizations. Prior to iServe, was an analyst and trader at several hedge funds as well as ran the European Risk Arbitrage trading desk at Bear Stearns. Brent is also the author of The Daily Tearsheet, a blog focused on the economy, financial markets and real estate.