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The Federal Reserve announcement yesterday wasn’t kidding. US economic growth is “modest.” And very French (whose GDP growth is only 1.1%. The US is currently like Portugal at 1.5%.
The Bureau of Economic Analysis reported preliminary Q3 GDP this morning. It clocked in at a modest 1.49%. This represents incredible volatility of GDP as it fell from Q2 GDP of 3.9%
Hey, I thought that the massive Federal Reserve intervention since 2007 was supposed to stabilize the economy, not make it more volatile!
This is odd since the Atlanta Fed’s GDP NOW is showing Q3 GDP growth at 1.1%, which is even worse than the BEA’s estimate.
The good news is that Personal Consumption Expenditures grew at 3.2% QoQ. The bad news is that PCE Core prices YoY keep falling and are rising at 1.30% YoY. So even with declining prices there seems to be a lackluster reaction by consumers.
Inventories took a slide after a couple of quarters of buildup falling -1.4%.
Even France’s Socialist President Francois Hollande is aghast.
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