G.D.P. Grew at 1.9% Rate in Quarter, a New Sign of Slowdown
S E E D E D C O N T E N T
Dogged by uneasiness over trade frictions and weak global growth, the American economy continued to slow over the summer. Gross domestic product -- the broadest measure of goods and services produced in the economy -- grew at a 1.9 percent annual rate for the third quarter, according to preliminary data released by the Commerce Department on Wednesday. Wall Street analysts had forecast a gain of 1.5 percent.
The year started out with a surge, but the pace of growth declined in the spring and again over the period that spanned July, August and September, the first time in a decade that the growth rate has fallen for two consecutive quarters.
Policymakers at the Federal Reserve are expected to end their two days of meetings in Washington on Wednesday afternoon with an announcement that the central bank will again drop its benchmark interest rate to prevent a slowdown from turning into a slide.
"We are expecting the Fed to lower rates," said Lydia Boussour, senior United States economist at Oxford Economics. "I think there is a stronger case now than just a few months ago."
Read more: https://www.nytimes.com/2019/10/30/business/economy/gdp-economy.html
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I thought this couldn't happen under Trump. s.
Well, the radical Obama did say “Two percent real GDP growth is the new normal for the U.S. economy.” Though for Obama it was more like 1.64%. It would be an outlier for Trump.
It will be interesting to see if the Fed takes Trumps advice and cuts the rate. He’s been the hardest on them when they raised it and voiced strong opposition at the time.
Except that if interest rates are already cut to the damn bone for lameass political reasons during times of full employment then The Fed will be powerless to promote growth by cutting interest rates when the next cyclical economuc recession finally and inevitably strikes our economy, again...
That isn't true because in the last interview with the Fed chairman on NPR he said he has quantitative easing as a tool and also the possibility of negative interest rates like we now see in some parts of Europe.
https://en.wikipedia.org/wiki/Quantitative_easing
I have no confidence in the Fed and its policies but I'm aware they have other tools in their chest to manipulate the free market and screw things up.
Do you really believe that The Fed having to resort to negative interest rates for the first time in US history, where US banks actually have to pay businesses and individuals interest to bribe them to borrow money from them, would actually be a real indication of a truly good or even growing economy? I think I will stand by what I said originally and not go by what one of Trump's lameass sycophantic bought out corrupt waterheaded appointees ever said anyway...
It is not what some people may say that will ultimatley cause the US economy to crash into another gop Great Recession ending Obama's Longest Economic Expansion in US History. Nope, it will be the damn gop's financial incompetence and Donald Trump's financial mismanagement ultimately at fault...
I would like to see the Fed abolished and interest rates fluctuate based on the free market and not be manipulated by the government.
I’m also not a fan of the quantitative easing the Fed used during the Obama years.
Of course you do and then you advocate for our government surrendering one of the only ways it has to stimulate a faltering economy or to ease the effects of an economic recession. Cutting interest rates and taxes and increasing government spending are the only tools we have effect economy growth. Taking one tool away would only cripple our government's ability to enact the full spectrum of fiscal policy. That does not seem wise or very likely to me...
Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.
Ernest Benn
Once the sugar high of Trump's huge irresponsible tax cuts for the very rich wore off it was inevitable Trump's and the damn gop's financial incompetence would ultimately crash Obama's Longest Financial Recovery In History landing us in another gop Great Recession and suffering trillion dollar budget deficits, again...
Try again.
You cannot have sustained economic growth forever.
Obama had 0% fed interest rates; the fed buyout of toxic assets; porkulus; and the America Recovery and Reinvestment Act to keep his anemic economic growth going. Just remember it was the slowest economic recovery from recession ever.
The Fed has since raised interest rates which will slow economic growth. We are trying to force China and the EU to give the US balanced trade agreements through sanctions (short term pain for hopefully long term gain). The new USMCA trade agreement is still sitting on Pelosi's desk gathering dust, and doesn't look like the Dems have any desire to pass it. Not to mention the Dems and their media surrogates projecting doom and gloom before Trump even took office.
As for the deficits, you get those when you continue to fight wars across the planet- and need to replace munitions, equipment, and pay and train personnel for combat situations. Also, revamping the military technology to keep up with the Chinese and Russians- since our NATO "allies" are worthless.
I think I will still stand exactly by what I said above without any qualifications and If you cannot understand this then maybe you could begin by taking Econ 101 at your local community college because I own a fine lambskin diploma with my name and the word "Economics" writ in fancy script upon it which was issued to me by a major state university's highly rated school of business over 40 years ago. Do you? I did not think so. In that case, "NEXT!"
"G.D.P. Grew at 1.9% Rate in Quarter, a New Sign of Slowdown"
" Satisfaction " does get one to sit on the Barcalounger now and again, to " savor" the "Gains" one has now.
Time to "Reflect" on all the "Good Things".
A battle lost or won is easily described, understood, and appreciated, but the moral growth of a great nation requires reflection , as well as observation, to appreciate it .
Frederick Douglass