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This is not a good sign, this is a problem. Because the economy is still growing so fast with interest rates as high as they are it means that the Fed is going

This is not a good sign, this is a problem. Because the economy is still growing so fast with interest rates as high as they are it means that the Fed is going to increase interest rates even further. This is going to make a recession a certainty in the near future. Also, with interest rates this high and the economy steaming along. That means inflation is going to keep rising as well.

zeroonetwothree 3y ago
Recessions are never "a certainty"
- Podgajski 3y ago
  The timing is never certain, but recessions will always happen. So they are a certainty.
kjfdslakj 3y ago
I don't follow you're line of reasoning. The Fed's mandate is maximum employment, stable prices, and moderate long-term interest rates. None of that says too much GDP growth by itself means higher rates.
- Podgajski 3y ago
  “The FOMC judges that low and stable inflation at the rate of 2 percent per year, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with achievement of both parts of the dual mandate.” https://www.federalreserve.gov/monetarypolicy/monetary-policy-what-are-its-goals-how-does-it-work.htm https://www.federalreserve.gov/monetarypolicy/monetary-polic... “Over time, growth in GDP causes inflation, which if left unchecked, runs the risk of morphing into hyperinflation. Most economists today agree that a small amount of inflation, about 2% a year, is more beneficial than detrimental to the economy.” https://www.investopedia.com/articles/06/gdpinflation.asp https://www.investopedia.com/articles/06/gdpinflation.asp
  - kjfdslakj 3y ago
    That still doesn't make your point. Are you saying that annual GDP growth of 4.9% is the type of rampant growth that causes inflation based on... an article on a dodgy website? Because, it looks like you're saying all GDP growth causes hyperinflation based on an article on a dodgy website.
    - Podgajski 3y ago
      No, I’m saying inflation with high GDP is never good. You can do the research on your own if you want. Is Forbes a dodgy website? https://www.forbes.com/sites/billconerly/2019/05/01/does-economic-growth-cause-inflation-sometimes-and-that-sometime-is-now/?sh=349bd0806245 https://www.forbes.com/sites/billconerly/2019/05/01/does-eco...

zeroonetwothree 3y ago

Recessions are never "a certainty"

Podgajski 3y ago
The timing is never certain, but recessions will always happen. So they are a certainty.

kjfdslakj 3y ago

I don't follow you're line of reasoning. The Fed's mandate is maximum employment, stable prices, and moderate long-term interest rates. None of that says too much GDP growth by itself means higher rates.

Podgajski 3y ago
“The FOMC judges that low and stable inflation at the rate of 2 percent per year, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with achievement of both parts of the dual mandate.” https://www.federalreserve.gov/monetarypolicy/monetary-policy-what-are-its-goals-how-does-it-work.htm https://www.federalreserve.gov/monetarypolicy/monetary-polic... “Over time, growth in GDP causes inflation, which if left unchecked, runs the risk of morphing into hyperinflation. Most economists today agree that a small amount of inflation, about 2% a year, is more beneficial than detrimental to the economy.” https://www.investopedia.com/articles/06/gdpinflation.asp https://www.investopedia.com/articles/06/gdpinflation.asp
- kjfdslakj 3y ago
  That still doesn't make your point. Are you saying that annual GDP growth of 4.9% is the type of rampant growth that causes inflation based on... an article on a dodgy website? Because, it looks like you're saying all GDP growth causes hyperinflation based on an article on a dodgy website.
  - Podgajski 3y ago
    No, I’m saying inflation with high GDP is never good. You can do the research on your own if you want. Is Forbes a dodgy website? https://www.forbes.com/sites/billconerly/2019/05/01/does-economic-growth-cause-inflation-sometimes-and-that-sometime-is-now/?sh=349bd0806245 https://www.forbes.com/sites/billconerly/2019/05/01/does-eco...