Those hoping to hear Powell say why the Fed is taking such extreme measures when the economy is estimated to be growing at 2.9% will have to wait. Here’s why…
(Silver Doctors Editors) The Atlanta Fed has lowered its estimate for first quarter GDP to 2.9%.
From GDPNow :
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2020 is 2.9 percent on March 17, down from 3.1 percent on March 6. Following this week’s and last week’s data releases by the U.S. Bureau of Labor Statistics, the Federal Reserve Board of Governors, and the U.S. Census Bureau, a decrease in the nowcast of first-quarter real personal consumption expenditures growth from 2.4 percent to 2.2 percent was partly offset by an increase in the nowcast of first-quarter real gross private domestic investment growth from 6.1 percent to 6.3 percent.
Here’s what the forecast looks like graphically:
Why does it matter?
Because on the one hand, it is beginning to show the disconnect between years of (fabricated) “data” and the reality on Main Street, which is quite a different reality.
It also shows a general confidence in growth in the US, still, even though the Fed is pumping unbacked, debt-based fiat currency into the financial system like it’s never pumped before.
Furthermore, GDP would have surely be a hot topic at tomorrow’s press conference, but it’s been cancelled:
There will be no softball questions on GDP tomorrow.
In fact, there will be no meeting at all.
The next update to the Atalanta Fed GDPNow estimate will be on March 18th.
Check back to see this post with the latest estimate on Wednesday.