Jerome Powell, Chairman of the United States Federal Reserve
Usa, the economy growing also in the first quarter 23
The American economy is growing, but is slowing down due to the increase in interest rates. Among the concerns of new Lehman Brothers, of renewed presidential duels between ultra seniors and of distant war winds, the gross domestic product of the the world‘s largest power grew in the first quarter of the year by 1.1%, according to the Commerce Department. It was a growth (less than expected), certainly a slowdown. A rate of 0.3% on a quarterly level and less than 50% compared to the previous figure. American consumers, forgetting inflation, are doing their job, that is to consume in a market that encourages them in every way. But the high rates are affecting real estate and business investment. The summary of the government report leaves no room for doubt “Real GDP growth reflects increases in consumer spending, exports, federal, state and local government spending and non-residential fixed investment, which were partially offset by declines in private inventory and investment residential landlines. On the contrary, imports are growing”.
Usa, Americans spend on cars and services
But what did the Americans buy the most? Especially cars (with a growing electric trend) and services such as restaurants, healthcare and rentals. THEThe government, on the other hand, has spent more, both at the local and state levels, on employee wages. However, it is certainly true that, albeit with the handbrake on a bit, the powerful stars and stripes economy it has been growing for three quarters, despite the concern of many economists, of a possible slight recession. Recession, however, that does not seem to have arrived yet. Another solid economic data is that of the labor market with a growing trend and with unemployment which is the lowest for 50 years. On the other hand, going down for a good 9 months, the inflation rate still remains high. Headline inflation fell from 6% in February to 5% in March, but core inflation rose by a tenth to 5.6%. Thus, it is no longer food and energy that are responsible for the growth in prices, but products and services. In a year, the Federal Reserve raised rates more than ever since the early 1980s but failed to cool demand to keep core inflation in check. But consumption continues to support the economy. A final observation on the storm, which has not yet completely subsided for some American banks. An instability that restricts credit and has the effect of a further rise in rates, even if it is not official.
Subscribe to the newsletter