US Economic Update – 18 February 2022
Solid start to Q1 activity data; Fed to start lifting rates in March.
- Strong January retail and auto sales, and a sharp fall in COVID-19 cases, have boosted Q1 GDP growth prospects.
- Employment growth remains strong and wage growth robust. Inflation readings also remained elevated in January.
- We now expect the Fed to lift rates by 125bps over 2022 (previously 100bps) with the first increase in March.
- We also expect the Fed to start reducing the size of its balance sheet (“QT”) in Q3.
Find out more in NAB’s US Economic update (February 2022)