US Q4 result more sustainable
As the most influential economy, in terms of global growth, if the US sneezes the rest of the world still catches a cold.
I'm not sure what the opposite of sneezing is - but that's what the US has been doing through 2014.
As looked at here recently, the "JOLTS" index showed job openings at their highest level since 2001.
And the Job Openings Rate is also now at its highest level since before the financial crisis.
Meanwhile US jobs growth has been becoming stronger, recording its strongest quarterly growth in 17 years as detailed in my chart packs here.
The big question is when the Fed might start to look at hiking interest rates.
Overnight the US released its revised GDP growth figures for Q4 2014, which showed the economy growing at a more sustainable 2.2 percent annualised pace in the final quarter of the year.
The Q3 figures had shown the economy expanding at a rip-snorting 5 percent annualised pace.
Consumer spending was strong recording annualised growth of 4.2 percent in Q4, though final GDP was weaker amid indicators of stock accumulation.
Growth is expected to pick up again in Q1 2015 to around 2.4 to 3 percent in annualised terms as the threat of an inventory overhang recedes, while consumer spending should remain elevated in 2015, in part thanks to cheaper gasoline prices.
The revised real GDP figures charted below in 2009 chained dollars terms affirm the US economic recovery.
Despite this apparent strength in the labour market, inflationary pressures in the US have remained soft to date.
As such there has been little urgency for the Federal Reserve to look at hiking its interest rates from near zero.
All of this indirectly impacts Australia's own interest rate policies, particularly via movements in the currency.
The Reserve Bank of Australia (RBA) meets on Tuesday to decide whether to leave interest rates on hold at 2.25 percent or cut them to 2 percent.
At the close yesterday markets were pricing a 62 percent chance of a cut, with implied yields on cash rate futures contracts for November 2015 plumbing new depths at below 1.7 percent.
However, the March interest rate decision very much hangs in the balance.
I will look at the likely path of Australian interest rates in 2015 in more detail tomorrow.