In the News:
The Wall Street Journal

Inflation has reduced the appetite of consumers to spend as the trade deficit narrows, chief economist Joseph Brusuelas tells The Wall Street Journal:

"The improvement in the trade balance, driven by the adjustment in the value of the dollar during [the first quarter of 2008] implies that ex-trade the economy contracted during the first three months of the year. In an election year, we do hope that this important development is not lost in the greater political discussion among our public actors and the media. Under normal circumstances a decline in the real adjusted trade balance and the improvement in the overall picture for output would be a cause for a positive reaction in the market. However, the data inside the March trade report suggests that the rapid rise in headline inflation has sharply reduced the appetite of U.S. consumers for goods and services across the board." Joseph Brusuelas, Merk Investments