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Saturday, May 15, 2021

The Biggest Growth Quarter Of All Time Will Lift Inflation

#inflation #growth #GDP

St. Louis Fed President James Bullard said the US economy will see “off the charts” growth in Q-3 that will help lift inflation.

“This is the biggest growth Quarter of all time in the US,” he said Friday during a moderated discussion with the Boeing Center for Supply Chain Innovation. “It looks like 30% at an annual rate. Crazy number, way off the charts compared to anything we are used to in US post-war macroeconomic history.”

US GDP contracted at a 31.7% annualized pace in Q-2 because of the economic shutdowns instituted to slow the coronavirus chaos. The Atlanta Fed’s GDPNow tracker is showing the potential for a 32% growth rate in Q-3.

The Fed hopes its new strategy rolled out last month will sink deep into the minds of the US public, be well understood to involve higher inflation in the future, and prompt people to act accordingly.

Have a healthy week, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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