What That GDP Revise Really Means

On the one hand, the economy is somewhat weaker than people had previously hoped. On the other, that persistent weakness will probably make the Federal Reserve reluctant to "taper" its asset purchases prematurely.

U.S. stocks were up this morning despite some surprising and sizable downward revisions in the U.S. Bureau of Economic Analysis's final first-quarter estimate of gross domestic product. Most bond yields, which have risen relentlessly since May, are down by a few basis points as well.

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