26 Apr 2024 3:42 pm
Biden can only lie about the economy for so long.
The GDP numbers released Thursday sent shock waves among economist and traders as the data se shows the economy is seriously slowing. The GDP contraction suggests a recession AND Inflation continues to be higher than expected. This is the worst of both worlds ... the economy is slowing, and inflation is climbing.
It appears the FED has lost control of Inflation. Economists are now starting to worry about "Stagflation". Stagflation would require the FED to raise interest rates at a time when growth is weakening.
Any economic growth over the last 2 years is a direct result of the Government's huge deficit spending (which caused inflation). The US National Debt of over $34 Trillion. The interest payments of this debt alone will make it impossible for the Government to increase spending to stimulate the economy to end the recession.
Inflation will probably cause the FED to raise interest rates early Summer. That means the Government will not be able to take either monetary or fiscal actions policy to increase growth. Inflation will persist as energy prices and food prices will increase ... producing "stagflation" ...
The GDP numbers released Thursday sent shock waves among economist and traders as the data se shows the economy is seriously slowing. The GDP contraction suggests a recession AND Inflation continues to be higher than expected. This is the worst of both worlds ... the economy is slowing, and inflation is climbing.
It appears the FED has lost control of Inflation. Economists are now starting to worry about "Stagflation". Stagflation would require the FED to raise interest rates at a time when growth is weakening.
Any economic growth over the last 2 years is a direct result of the Government's huge deficit spending (which caused inflation). The US National Debt of over $34 Trillion. The interest payments of this debt alone will make it impossible for the Government to increase spending to stimulate the economy to end the recession.
Inflation will probably cause the FED to raise interest rates early Summer. That means the Government will not be able to take either monetary or fiscal actions policy to increase growth. Inflation will persist as energy prices and food prices will increase ... producing "stagflation" ...