Weekly Economic Update: January 29, 2024
• Yields fell modestly over the week with the two-year Treasury note falling by four basis points to 4.34% while the five-year note decreased by two basis points to 4.03%.
• Real GDP growth beat expectations in the fourth quarter of 2023 with the advance reading showcasing that the economy grew at an inflation adjusted annualized pace of 3.3%.
• Economic growth was driven by consumption which contributed a healthy 1.9% to the final number, however, a surprise accumulation of business inventories as well as net exports added an extra boost to the advance reading.
• The Fed meets for the first time this year on Wednesday and with no rate change or Summary of Projections expected, market participants and economists will carefully listen to Chairman Powell speak and look for any clues regarding the future path of monetary policy.