by Wolf Richter
Wolf Street
That scenario is re-emerging as a real possibility in recent economic data.
When the Fed cut its policy rates on September 18, it looked at labor market data showing a sudden slowdown of job creation to weak levels, and it looked at decent consumer spending data, so-so income growth, and a very thin and plunging savings rate. And the trends looked lousy.
But starting 11 days after the Fed’s decision, the revisions and new data arrived. And the whole scenario changed.