The Hesitation Blues

- "Recovery’s apparent loss of momentum stops well short of signaling an economywide decline in activity. Barring a further breakdown in financial conditions, we anticipate second half growth in a range of 2% to 2½%."
- "Fed officials revised down their own growth and inflation forecasts but remained more upbeat than our own projections. Officials have deemphasized exit strategy discussions and acknowledged the revival of downside risks. But their baseline view does not support active consideration of new policy options."
- "Unconventional monetary policy proved highly effective in restoring key elements of financial stability. While conditions have weakened again somewhat, policymakers’ near-term message likely will reaffirm a readiness to support recovery."
- "Core retail sales rose in June but downward revisions to previous levels reveal greater hesitancy to spend among consumers despite solid income gains. A parallel retreat in business confidence underscores the importance of securing a more supportive financial setting."
Citigroup Comments on Credit 20100716

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