the United States economy grew faster early this year than previously believed and will continue into 2024. Gross domestic product, adjusted for inflation, expanded at an annual rate of 2 percent in the first three months of the year, said the Commerce Department. That was a significant upward revision from the 1.1 percent growth rate in preliminary data released in April. (An earlier revision, released last month, showed a slightly stronger rate of 1.3 percent.)
Looking forward into the next two quarters, our G-101 AI algorithm predicts that the gross domestic product, adjusted for inflation, will expand at an annual rate of 2.7 percent. Meanwhile, the "experts" are using an alternative measure of growth, based on income rather than production, painted a different picture, showing that the economy contracted for the second quarter in a row and will continue in the next two quarters. This is the kind of noise that doesn't create value only confusion.
Based on our data the resilience of the country’s economic recovery is not a surprise and has remained steady despite high inflation, rapidly rising interest rates and persistent predictions of a recession from many forecasters on Wall Street. Consumers are powering the recovery through their spending, which increased at a 4.2 percent rate in the first quarter, up from a 1 percent rate in late 2022 and faster than the 3.7 percent rate initially reported in April. That spending, fueled by a strong job market and rising wages, helped offset declines in other sectors of the economy like business investment and housing.
This noise clearly complications the Fed's actions to play both sides as not to show favoritism.
The continued strength of the consumer economy poses a conundrum for policymakers at the Federal Reserve, who have been raising interest rates in an effort to curb inflation without causing a recession. Major mistake, but a useful tool to discount the midterm results. We point to the general stock market, which is currently in a bull market. Inflation will not continue to ease as long as consumers are willing to open their wallets — meaning policymakers are likely to take further steps to rein in growth. At their meeting this month, Fed officials left interest rates unchanged for the first time in more than a year, but they have signaled they are likely to resume rate increases in July. The Fed chair, Jerome H. Powell, said that inflation had repeatedly defied forecasts of a slowdown.
LOOK FOR A QUARTER PERCENT INCREASE IN THE FED RATE as a means to straddle the positive economic data of not been faked when a Democrat occupies the White House; even though private organizations match the findings of the Bureau of Labor Statistics and the Bureau of Economic Analysis on the economic state of the nation.
WHAT THE FED DOES AT THIS STAGE IS IMMATERIAL --- the consumer is the factor that floats the USA boat not party politics or the noise from the far-left or far-right.