GDP: 6.9% vs 5.5% estimate. Former Fed member: this number is astonishing. No one expected numbers like this.
That's about the only economic number mainstream media journalists will see.
How everyone heard Steve Liesman this morning: "Yada, yada ,yada, yada, GDP, yada, yada, yada, yada, 6.9%, yada, yada, yada, much better than expected, yada, yada, yada."
Last three months, GDP grew at an incredible 6.9%.
Full year, 2021: 5.7%.
Fantastic numbers. But comes at a cost: inflation. The latter hurts fixed-income and low-income folks.
But on CNBC this morning, I heard the word "recession" mentioned more than twice.
Full employment: 3.9%.
More jobs available than workers available. Workers should have pricing power.
But wages, for some reason, not moving up as fast as one would expect. Low-wage earners are hurting.
I still get a kick out of this, this concern that interest rates going up too fast. Free money now, at worst, maybe 1% Fed rate at end of 2022 -- which pretty seems like free money for many folks.
The market seems to agree.
After the close yesterday, the Dow was down as much as 400 points.
This morning, before the GDP numbers came out, Dow flat to slightly positive. Right now, now that investors are up and digesting these numbers, the Dow has an implied opening of 175.
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