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US Corporate Profits Are Still Rising, If Fed Is Stripped From Data

  • Fed profits fell by the most on record in the first quarter
  • Record capital-consumption adjustment also reduced profits

US corporate profits fell for a second straight quarter in the first three months of the year, according to official government data published Thursday. But that’s only because the Federal Reserve is included in the figures.

Once you exclude the central bank, the data tell a slightly different story: Corporate profits actually rose to a record in the first quarter, though the rate of increase has slowed.