Ahead of the Tape
More Liquidity Only Douses Growth Sparks</br></br>Today's ultralow interest rates have helped boost profits, but not economic growth.</br></br>This is plainly evident in recent figures. Since the recession ended in mid-2009, U.S. corporate profits have jumped by about 43% to a record $1.45 trillion as of the first quarter, after taxes, inventory and accounting adjustments, according to the Commerce Department.</br></br>What hasn't recovered, however, is economic growth. Indeed, in real terms, gross domestic product hasn't even returned to its prerecession peak.</br></br>On Friday, Commerce data is likely to show GDP losing further ground. Second-quarter growth, originally reported at a measly 1.3%, is expected to be revised down to 1% in part because exports proved weaker than first thought. That follows GDP growth of just 0.4% in the first quarter, on a seasonally adjusted annualized basis.