Summary:
BEA released the second estimate of the first quarter GDP, and it's up from 0.5 to 0.8%. Not bad, not great. Note that federal government spending is a drag on the recovery (although local and state governments are positive force, and part of that is actually funded by the federal government anyway; so the actual negative impact of contractionary fiscal policy is smaller than what the numbers suggest). At any rate, this will be used to demand higher rates in the next meeting of the FOMC. You can bet about it. Listen to Dean Baker at the Rick Smith Show here, suggesting why this is a terrible idea.
Topics:
Matias Vernengo considers the following as important: Dean Baker, Slow recovery
This could be interesting, too:
BEA released the second estimate of the first quarter GDP, and it's up from 0.5 to 0.8%. Not bad, not great. Note that federal government spending is a drag on the recovery (although local and state governments are positive force, and part of that is actually funded by the federal government anyway; so the actual negative impact of contractionary fiscal policy is smaller than what the numbers suggest). At any rate, this will be used to demand higher rates in the next meeting of the FOMC. You can bet about it. Listen to Dean Baker at the Rick Smith Show here, suggesting why this is a terrible idea.
Topics:
Matias Vernengo considers the following as important: Dean Baker, Slow recovery
This could be interesting, too:
Angry Bear writes Correcting 11 Washington Post’s Charts That Are Supposed to Tell How the Economy Changed Since Covid
Angry Bear writes What One Economist Wants to Hear on Thursday’s SOTU Address
Angry Bear writes Social Security and Medicare: Fun with Numbers Time
Angry Bear writes GDP: Soaring Structure Investment Makes Up for Slowing Consumption, as GDP Grows at 2.4 Percent in Q2
BEA released the second estimate of the first quarter GDP, and it's up from 0.5 to 0.8%. Not bad, not great. Note that federal government spending is a drag on the recovery (although local and state governments are positive force, and part of that is actually funded by the federal government anyway; so the actual negative impact of contractionary fiscal policy is smaller than what the numbers suggest). At any rate, this will be used to demand higher rates in the next meeting of the FOMC. You can bet about it. Listen to Dean Baker at the Rick Smith Show here, suggesting why this is a terrible idea.