The Economist (July 31)
“Despite robust spending, America’s economy grew slower than expected in the second quarter, expanding by an annualised 1.5%. Consumer activity grew by 3.2% thanks to a fall in gasoline prices and higher-than-usual tax refunds. AI-driven investment continued to boom. These bright spots were, however, offset by a decline in net exports and companies drawing down their inventories.”
Tags: 1.5%, AI-driven investment, Boom, Consumer activity, Decline, Economy, Expanding, Gasoline prices, Inventories, Net exports, Q2, Robust spending, Slower, Tax refunds, U.S.
Bloomberg (April 18)
“The slower the Fed, the harder the landing.” Quick action while inflation expectations are “still well anchored” will minimize the “cost in terms of foregone output and higher unemployment.” Those costs will mushroom if the Fed “waits and allows inflation expectations to get out of hand.” A recession remains unlikely in 2022, but if there isn’t one “in the next couple years, it will only be worse.”
Tags: Anchored, Costs, Expectations, Fed, Inflation, Landing, Output, Quick action, Recession, Slower, Unemployment, Worse
