The U.S. economy continued its expansion in the third quarter, growing at an annualized rate of 2.8 percent

[essentialsaltes]

The economy’s resilience ahead of a tightly contested presidential election was fueled by robust consumer spending that has outlasted even the most optimistic forecasts. Despite inflation, Americans have continued to shell out for a range of goods and services, including cars, dining out and travel.

However, there are pockets of softness. A dip in housing investments, a slowdown in inventory purchases and a rise in imports all dragged down the latest reading [from the previous 3.0%]

“The U.S. economy is now in a very good spot and is characterized by full employment, price stability and strong productivity gains,” said Joe Brusuelas, chief economist at RSM. Despite the gradual slowdown, the U.S. economy is still “firing on all cylinders,” he said.

The upbeat snapshot of the economy could help boost Vice President Kamala Harris’s standing in the coming days. Both she and former president Donald Trump have campaigned heavily on economic issues in hopes of winning over voters who consistently cite the cost of living as among their top concerns. Harris has focused on lowering costs for middle class families by making housing, childcare and groceries more affordable. Trump, meanwhile, has doubled down on his plans to lower taxes and institute across-the-board tariffs on imported goods.

 

[Laodicean60]

This is all you can hope! At least hopefully my kids are safe from layoffs.

 

[rambot]

I think there's a difference between saying "the economy is doing well" and "workers are not seeing the benefit of the economy doing well".

Hopefully everyone will recognize this and figure out ways to protect workers instead of exploit them and empower their bosses.

 

[Merrill]

The economy’s resilience ahead of a tightly contested presidential election was fueled by robust consumer spending that has outlasted even the most optimistic forecasts. Despite inflation, Americans have continued to shell out for a range of goods and services, including cars, dining out and travel.

However, there are pockets of softness. A dip in housing investments, a slowdown in inventory purchases and a rise in imports all dragged down the latest reading [from the previous 3.0%]

“The U.S. economy is now in a very good spot and is characterized by full employment, price stability and strong productivity gains,” said Joe Brusuelas, chief economist at RSM. Despite the gradual slowdown, the U.S. economy is still “firing on all cylinders,” he said.

The upbeat snapshot of the economy could help boost Vice President Kamala Harris’s standing in the coming days. Both she and former president Donald Trump have campaigned heavily on economic issues in hopes of winning over voters who consistently cite the cost of living as among their top concerns. Harris has focused on lowering costs for middle class families by making housing, childcare and groceries more affordable. Trump, meanwhile, has doubled down on his plans to lower taxes and institute across-the-board tariffs on imported goods.

And here is the problem

If the economy really is growing at a decent rate, the Federal Reserve should NOT be cutting interest rates

cutting rates while wages are growing and the economy is expanding will cause another wave of inflation

but the Fed looks to be on-track to cut rates in the next meeting

so is the economy really healthy, or are they simply making political moves?

 

[rambot]

And here is the problem

If the economy really is growing at a decent rate, the Federal Reserve should NOT be cutting interest rates

cutting rates while wages are growing and the economy is expanding will cause another wave of inflation

but the Fed looks to be on-track to cut rates in the next meeting

so is the economy really healthy, or are they simply making political moves?

But the interests rates we saw for a looooong time were ridiculously low (I'm thinking precovid kinda stuff) and they didn't cause inflation.

 

[Merrill]

But the interests rates we saw for a looooong time were ridiculously low (I'm thinking precovid kinda stuff) and they didn't cause inflation.

Inflation is caused by both fiscal and monetary policy. It can be worsened by supply shocks and tariffs

we have

1. Bad fiscal policy (since 2000)
2. Bad monetary policy (since the pandemic)
3. Tariffs
4. Demographics: the Millennials are coming into their peak earning years

and a trade war which is going to get a lot worse, regardless of who wins the Whitehouse

China is essentially a rogue state at this point. Not sure if the relationship can be repaired. They seem committed to letting North Korea threaten the west and attack Ukraine, while making their own threats against Taiwan

 

[Astrid]

The economy’s resilience ahead of a tightly contested presidential election was fueled by robust consumer spending that has outlasted even the most optimistic forecasts. Despite inflation, Americans have continued to shell out for a range of goods and services, including cars, dining out and travel.

However, there are pockets of softness. A dip in housing investments, a slowdown in inventory purchases and a rise in imports all dragged down the latest reading [from the previous 3.0%]

“The U.S. economy is now in a very good spot and is characterized by full employment, price stability and strong productivity gains,” said Joe Brusuelas, chief economist at RSM. Despite the gradual slowdown, the U.S. economy is still “firing on all cylinders,” he said.

The upbeat snapshot of the economy could help boost Vice President Kamala Harris’s standing in the coming days. Both she and former president Donald Trump have campaigned heavily on economic issues in hopes of winning over voters who consistently cite the cost of living as among their top concerns. Harris has focused on lowering costs for middle class families by making housing, childcare and groceries more affordable. Trump, meanwhile, has doubled down on his plans to lower taxes and institute across-the-board tariffs on imported goods.

I hear that indicators always are showing
strong positive trends a month or so before
the election.

 

[Astrid]

Inflation is caused by both fiscal and monetary policy. It can be worsened by supply shocks and tariffs

we have

1. Bad fiscal policy (since 2000)
2. Bad monetary policy (since the pandemic)
3. Tariffs
4. Demographics: the Millennials are coming into their peak earning years

and a trade war which is going to get a lot worse, regardless of who wins the Whitehouse

China is essentially a rogue state at this point. Not sure if the relationship can be repaired. They seem committed to letting North Korea threaten the west and attack Ukraine, while making their own threats against Taiwan

Always blaming China

 

[Merrill]

Always blaming China

No, this is not simply China

as I said, it is a consequence of bad fiscal and monetary policy

 

[essentialsaltes]

Despite two hurricanes and the Boeing strike, the US economy managed to add 12,000 jobs in October.

The economy picked up just 12,000 jobs in October, the slowest pace since December 2020, as a labor market cooldown was exacerbated by major hurricanes and labor strikes in the final jobs report before the presidential election.

Unemployment was steady at 4.1%.

 

[Astrid]

No, this is not simply China

as I said, it is a consequence of bad fiscal and monetary policy

“ not simply”

Just mentioning that “ blame / vilify China” is a bit of a thing.

 

[Merrill]

“ not simply”

Just mentioning that “ blame / vilify China” is a bit of a thing.

so you think China isn't a problem?

I hope you are right, because an invasion of Taiwan would be really, really bad

 

[Astrid]

so you think China isn't a problem?

I hope you are right, because an invasion of Taiwan would be really, really bad

I don’t consider my country “a problem”

 

[Merrill]

I don’t consider my country “a problem”

your country will absolutely become a problem if it attacks Taiwan

I hope all the threats aren't real

I am all for peaceful relations and open trade with China. Invading Taiwan would be complete insanity

 

[o_mlly]

The economy’s resilience ahead of a tightly contested presidential election was fueled by robust consumer spending that has outlasted even the most optimistic forecasts. Despite inflation, Americans have continued to shell out for a range of goods and services, including cars, dining out and travel.

Because of inflation, consumer's expectation on the dim future of stable prices may be a major cause of "buy it now before the price goes up any farther". Remember the '70's?

And as to the jobs report, look where those jobs came from and where other jobs were lost.

Continuing expansion in government jobs coupled with the flight from public schools and government health programs ... not good.

 

[Astrid]

your country will absolutely become a problem if it attacks Taiwan

I hope all the threats aren't real

I am all for peaceful relations and open trade with China. Invading Taiwan would be complete insanity

If China had run gunbosts up the Mississippi all the way to Ohio
( and fired on Americans) , armed one party in your civil war-
and the losers fled to, oh, Florida where China guarded them to
this day- maybe it would clarify who is the threat In the
Taiwan situation you Westerners created.

 

[Merrill]

If China had run gunbosts up the Mississippi all the way to Ohio
( and fired on Americans) , armed one party in your civil war-
and the losers fled to, oh, Florida where China guarded them to
this day- maybe it would clarify who is the threat In the
Taiwan situation you Westerners created.

what nonsense is this? Some new level of propaganda lol

yes, you had a civil war, and a communist dictatorship is now in power. The US didn't put them in power, nor did it fire on any of your people

 

[Astrid]

what nonsense is this? Some new level of propaganda lol

yes, you had a civil war, and a communist dictatorship is now in power. The US didn't put them in power, nor did it fire on any of your people

Laugh at your own ignorance And inability to even
address what I said.

 

[BCP1928]

Laugh at your own ignorance And inability to even
address what I said.

Well, they were communists and we're supposed to hate them for it, but I am not persuaded that our present relations with China would be any better if the KMT had won.

 

[o_mlly]

If China had run gunbosts up the Mississippi all the way to Ohio

Uhh? The Mississippi river does not run through Ohio. Posts that begin with falsehoods may and should be immediately dismissed.