The last two weeks have brought a crush of surprisingly weak economic data, raising the question of whether the Fed, in its effort to slow the pace of growth, hiked interest rates too much. If it did, then maybe it will have to cut the fed funds rate to keep the economy from tipping into recession.
Some economists think so.
But more are saying it's still too soon to draw that conclusion. There are reasons to think the recent batch of feeble data is overstating the case, they say. And, they point out, financial market conditions have eased in both the bond and stock markets, which should help the economy perform better in the months ahead. With a few notable exceptions, the economic data calendar has been a parade of losers lately. You have to feel a little nervous about whether growth might be hitting a real air pocket here.