Memo To Fed: If Your Knees Are Wobbly, Don’t Announce A Plan

Yesterday we noted that the so-called “control group” in the May retail sales report, which is used in the GDP calculation, printed a blank (0.0% M/M). Also, the data from April was revised dramatically lower from +1.0% M/M to +0.5% M/M.

This suggested Q2 GDP could be heading into a recessionary contraction and that the dreaded ‘technical’ recession (two straight quarters of negative real GDP) looms.