Finally, some good news? Maybe. The Bureau of Economic Analysis reported on Thursday that the U.S. economy posted its first period of positive growth for 2022 in the third quarter, which may ease recession fears - at least temporarily. GDP from July through September increased at a 2.6% annualized pace for the period. That was above the Dow Jones forecast for 2.3%.
In today's episode of The Higher Standard, Chris and Saied explain why this so-called good news is really anything but, and what that means for the economy and the Fed's attempts to fight inflation.
They discuss why home prices are higher than they were a year ago, but gains are shrinking at the fastest pace on record, according to a report from S&P Case-Shiller.
Chris and Saied look at a report from Barron's stating that the yield on the 3-month Treasury has surpassed that of the 10-Year Treasury. An inversion like that is considered very rare, but it suggests that a recession is on the way or possibly even here already.
They also discuss comments from President Biden concerning actions being taken to eliminate junk fees - hidden fees found in many services from internet access to hotels. He claims that it will save Americans billions.
Join Chris and Saied for this fascinating conversation.
What You’ll Learn in this Show:
- Why people are getting confused by the GDP numbers and how they indicate the state of the economy.
- Why mortgage rates have topped 7% for the first time since 2002, and why we'll likely see 8% before the year is out.
- What an 'inverted yield curve' is, and why some believe it's an indicator of an incoming recession.
- Why President Biden's initiative to eliminate 'junk fees' sounds good, but is also a little too ambiguous to take seriously.
- And so much more...
"Mortgage rates top 7% for the first time since 2002, chilling L.A. housing market" (article from the Los Angeles Times)
"The Recession Signal That Really Counts Just Flashed Bright Red" (article from Barron's)
"Zillow cuts 300 jobs, citing pivot to tech" (The Real Deal via Instagram)
"Home prices cooled at a record pace in August, S&P Case-Shiller says" (article from CNBC)
"Powell again is facing political pressure as worries mount over the economy" (article from CNBC)