US growth Mind-altering deficits

Whatever happened to the US economy’s soft patch? Until last week, it looked like a sure thing. But a somewhat less awful trade deficit for March and a somewhat less anaemic preliminary payroll report for April was enough to change the mood. The dollar bounced, as investors decided that the soft spot was no more than an illusion. Investors are often a bit twitchy, but this shift in sentiment was particularly rapid and sharp. Quite possibly too rapid. Steadily higher US interest rates and the li...