According to the latest report from the US Bureau of Economic Analysis, the GDP growth in the first quarter of 2024 was 1.6%. However, this number fell short of initial estimates, which has raised concerns about the strength of the US economy. Despite high interest rates and inflation, Sahm Consulting founder Claudia Sahm believes that the underlying pace of the economy is strong and that this will be favorable for the Federal Reserve as it works to lower inflation rates.
Sahm notes that imports and inventories had an impact on GDP growth but not enough to change the overall view of the economy. She emphasizes that while there are some concerns about inflation, she believes that a strong economy will guide the Fed’s decisions moving forward. As such, she suggests that Chair Jerome Powell and his team at the Federal Reserve should base their decisions on data before making any definitive moves.
Sahm’s insights into GDP figures are particularly relevant given her past experience with recession indicators and her current role as an economist at Sahm Consulting. Her expertise provides valuable insights into how economic indicators can be used to inform decision-making and market analysis. For more expert insights and market analysis, you can watch the full episode of Morning Brief.
