They can't slow down the economy no matter how hard they try. 4.9% is an amazing number, but ironically it's bad news for the Wall Street and home buyers, because it all but guarantees more rate hikes. U.S. GDP grew at a 4.9% annual pace in the third quarter, better than expected https://www.msn.com/en-us/money/mar...a?cvid=274b2bed5ca84b8a858a21173c31f0f0&ei=12 Gross domestic product, a measure of all goods and services produced in the U.S., rose at a 4.9% annualized pace in the third quarter, ahead of the 4.7% estimate. The sharp increase came due to contributions from consumer spending, increased inventories, exports, residential investment and government spending. While the report could give the Fed some impetus to keep policy tight, traders were still pricing in no chance of an interest rate hike when the central bank meets next week.
But I wonder how much of this supposed "GDP growth" is just reflective of inflation. They say the inflation rate for the year 2022 was 8%.
Wages have gone up a lot, which increases spending which increases demand, which increases GDP. Usually it works the other way round, - GDP growth feeding inflation, while inflation depresses GDP growth, but it can work both ways. Either way, inflation has not been 8% in 2023, and in 2023 wages are growing faster than inflation.
Wages going "up" doesn't mean anything if all the costs have gone up too. Do you care to show any numbers to demonstrate that? (And would you still claim that wages have grown faster than inflation between the time period January 2022 and now, November 2023 ?)
Its meaningful when wages raise faster than inflation, and in May then started raising faster than inflation, and some time next year people will have recovered the purchasing power which they lost during high inflation. Well, its meaningful to most people, but obviously not to you, or other natural born pessimists
