US GDP beat forecasts at 3.4%, but inflation is still 3.6%. Which number do people care more about?
We had GDP growing 3.4% annualized versus 3.1% expected. Q2 growth was only 2.2%, which I remember was a huge disappointment. We were panicking about 2.2% growth last quarter, and now we’re celebrating 3.4% growth. And that’s all because we expected 3.1% growth. Who is we that expected that? It’s a bunch of economists forecast something, and we see if it’s good or if it’s bad versus the forecast. Inflation at 3.6% versus an expectation of 3.7%. Who cares? It’s not 2%. It’s high. Your average person looks at these numbers and goes, I don’t care, my steak is really expensive. And that’s probably what is going to matter when we come to the midterm elections.
#Economy #Inflation
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