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!