Rise and Fall of Economic Expectations

Below is a sample of how news media would portray the ups and downs of economic health.

According to the latest statistics, housing starts are up, indicating unexpected strength in the economy. Bond prices fell on the news.

In his eyes the battle is between the rate-lowering effect of the U.S. recession and the high rate of inflation. That sums up the problem now facing the interest rate forecasters.

News that U.S. job creation in January was more robust than anticipated sent a signal to currency markets to expect a stepped-up right against inflation, unleashing a bout of buying fervor for the U.S. dollar.

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