The U.S. economy grew much faster than expected over three months ending in June, accelerating from the previous quarter and defying concerns about a possible slowdown.
U.S. GDP grew at a 2.8% annualized rate over three months ending in September. That figure doubled the annualized rate of growth undertaken over the previous quarter.
The economic expansion reflected a surge in consumer spending, the U.S. Bureau of Economic Analysis said on Thursday. The uptick in spending included purchases of housing, and cars, among other items, the BEA added.
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If the Fed cuts interest rates as the economy is heating up, however, the central bank risks rekindling rapid price increases.
Nah, if the fed cuts rates, it because they don’t want to risk deflation. Inflation figures lag the “current” inflation because they’re an average of the last 12 months. If inflation gets down to the target too quickly, that means we had some deflation in the average, which can lead to companies and individuals saving instead of spending, which means job loss and slowed economic growth.
The only way we’d “rekindle” rapid price increases is if we get another massive supply-chain disruption (e.g. another pandemic, major war w/ China, etc) or some other major event that devastates our economy. Cutting rates by 0.25% won’t do that, and merely signifies to the public that the Fed sees price growth slowing too quickly.
If the Fed cuts interest rates as the economy is heating up, however, the central bank risks rekindling rapid price increases.
Or, you know, DO something about the rampant price gouging. There is no reason on this earth why a bag of Cheetos at the supermarket should cost 7 fucking dollars.
Cheetos cost $7? I had no idea. Not to be rude, but I don’t think Cheetos are a food staple.
And they certainly don’t cost $7 in my area, they’re more like $5-6 for a “party” size, less on sale. Your typical single serving is something like $1-2, which is pretty reasonable.
