Bad news about the economy 👎 is having its intended effect 👍

The Fed's medicine seems to be working 💊

Evidence of cooling prices emerge as the economy slows. (Source: Getty)

Economic data released in recent months has been less than great.

On Tuesday, the August S&P Global U.S. PMI (which tracks business activity) and July new home sales reports added to that trend. They came with these gloomy headlines:

US Business Activity Contracts Again, Weakest Since May 2020 - Bloomberg

U.S. manufacturing and services activity contracts in August: PMI - Yahoo Finance

New home sales fall 12.6% in July as rising prices take a toll - CNN

U.S. new home sales fall in July, the lowest level since January 2016 - MarketWatch

It’s the kind of stuff that you might expect from an economy that’s collapsing on itself.

However, while these headlines are accurate, they don’t capture the whole story.