Fed hopes the strong US economy will ‘give it time’ on inflation, economist says

US GDP (gross domestic product) grew by 1.6% in 2024's first quarter, as reported by the US Bureau of Economic Analysis, though still falling short of estimates. With interest rates and inflation still running high, what does the GDP print indicate about the strength of the US economy?
Sahm Consulting Founder Claudia Sahm deciphers how GDP plays into current economic outlooks as the Federal Reserve juggles its objectives to bring inflation lower.
"Today we got hit, imports had a bigger drag, that's a very noisy series. Inventories were a little in the play. These are not things that should change our view on the economy," Sahm tells Yahoo Finance. "It's been strong. It continues, the underlying pace continues to be strong. That's not bad for the Fed... Frankly, the Fed thinks it can lean on a strong economy."
Sahm, a former Federal Reserve Board economist for whom the Sahm Rule recession indicator is named after, goes on to say that the Fed and Chair Jerome Powell will "be driven by the data, and there's a lot of data we don't have yet."
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (apple.co/3Rten0R) or Android (bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: / yahoofinance
Instagram: yahoofinanc...
TikTok: www.tiktok.com/@yahoofinance?...
Facebook: / yahoofinance
LinkedIn: / yahoo-finance

[@Youtuberkt]

Rate cut only coming when unemployment is at 8%

[@jreneau369]

BIDENOMICS isn't working. High Inflation, High Gas, High Grocery Prices is by Design.

[@zoobrizz]

Consumer spending is up BECAUSE in INFLATION is up .

[@nickvin7447]

Stagflation

[@goneviral8814]

Word!!!

[@ghosthdel3098]

My dad works as an assistan director in one of he top 4 banks. He said last last week one of the guys from the feds came over and had 2 hours meeting with all the CEOs and some of the directors. His boss told him that fed guys told them rate will not be cut until fall. Anyway, who knows.

[@Asheve]

@@ghosthdel3098 looks like an election thing

[@ghosthdel3098]

@@Asheve yeah maybe? i dont care i am only 17yo, it doesnt effect me. As long i get my $500 pocket money every week i am happy

[@graysmith9218]

Fed fund Rates should have been at 7, 8%. We're still seeing inflation and the poor getting poorer before our eyes

[@pebos1234567890]

The economy slowing means the fed might be forced to dd to cut

[@user-mx9tu9xd1b]

Nothing to see here. Looking under the hood it’s all good😂😂😂😂

[@CryptoNewsNetwork_]

Lot of changes in world these days

[@awefaweffea4111]

And ya notice how they're far and few inbetween for the betterment of humanity?

[@titanium7675]

Accelerating inflation and slowed economic growth/decreased GDP is called STAGFLATION.

[@oxSarahxo1235]

😂

[@Youtuberkt]

Economy still looking good. Talk to me whhen gdp is -1%

[@jreneau369]

Looks Good? Higher Gas Prices, Higher Grocery Prices, Higher Rents, Higher Inflation is BAD in anyone's WORLD. 🙄

[@user-mx9tu9xd1b]

Parroting the lefts bullshit I see

[@Youtuberkt]

@@jreneau369 sorry but payments are still being made. when folks have to choose between the 3 things you mentioned is when shtf.

[@joealonzo536]

The key to knowing the state of the economy. Question: Can I afford in the Biden administration what I could afford in the last administration? And the answer is: NO, you cannot. Question: Is the 125% price increase of everything I need to buy and pay equal to the 17% salary increase I got; the answer is: NO, it is not. Question Analysis: Is the Biden administration taking money from doctors, school principals, Engineers, factory workers and transferring that money to the Billionaires “by ways of price increase”. The answer is YES.

[@justinwalker5295]

The fed should’ve cut last November.