- Ballestas Group
US Economy Grows Amid Inflation Concerns and Rate Uncertainty
The growth of the economy in the United States shows that inflation continues to be persistent and with it the uncertainty about how long interest rates will reach. As an example, during the week there was a jump in the manufacturing purchasing index of managers of the Institute for Supply Management, the indicator advanced to 51.3 points in February from 44.5 points in December. Another cause for concern was a 3.2% increase in US unit labor costs in the last quarter of 2022. The 2-year Treasury bond rate hit 4.94% of the level not seen since the 2007 pre-global financial crisis. Likewise, yields on 10-year and 30-year Treasury bonds exceeded 4% for the first time since November 2022.