U.S. GDP grew at a 4.9% annual pace in the third quarter, better than expected

Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by Podgajski on Thursday October 26, 2023 @12:04PM (#38027529)

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.

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by zeroonetwothree on Thursday October 26, 2023 @12:04PM (#38027541)

Recessions are never "a certainty"

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by Podgajski on Thursday October 26, 2023 @12:05PM (#38027549)

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

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by kjfdslakj on Thursday October 26, 2023 @01:25PM (#38028797)

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.

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by Podgajski on Thursday October 26, 2023 @01:42PM (#38029056)

“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-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

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by kjfdslakj on Thursday October 26, 2023 @04:22PM (#38031227)

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.

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by Podgajski on Thursday October 26, 2023 @04:46PM (#38031471)

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-eco...

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