Moderator: Nicole Marie
Can dinosaurs be far behind?
"Last May I posted that the market pointed to a slowdown in the economy at the end of this year--here's the gov's numbers for the GPD change this year:"
I assume you meant "GDP"? What has that percentage to do with economic growtg rate?
Real gross domestic product (GDP), the most comprehensive measure of economic activity,
The Fed's been trying to slow it down, out of inflationary fears. They tend to get nervous whenever growth exceeds about 3%. 1.6% is healthy growth, but it could be better.
I think you meant the CPI, an index of current prices to a benchmark year, instead of GDP. Prices can measure inflation, but economic growth may occur with or without it.
According the news the Fed has been trying to slow down economic growth. The rise in GDP is the measure of Economic Growth.
Interest rate adjustment is the only tool the Fed has to influence economic activity.
The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements.
"The labor market for American workers is continuing to improve, the latest government statistics showed yesterday, with job growth advancing in recent months and the unemployment rate falling last month to the lowest level since May 2001. In a report that eased concerns that economic growth might be faltering, the Labor Department reported yesterday that the jobless rate, seasonally adjusted, dropped in October to 4.4 percent, from 4.6 percent in September."
"The latest information about the economy leaves no question that it has slowed down by just about every measure--housing and manufacturing, retail sales and job growth, and others. Even the recent increase in compensation is generally believed to be a sign of coming layoffs, not a harbinger of wage inflation. When business dries up at firms and factories, employers don't cut back immediately. So for a time, pay and benefits hang in there. As for the recent improvement in the unemployment rate, sorry to say, it's an aberration. The job market won't turn up in any meaningful way when the overall direction of the economy is down."
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