US GDP (gross domestic product) grew by 1.6% in 2024’s first quarter, as reported by the US Bureau of Economic examination, though still falling short of estimates. With debt charge rates and inflation still running high, what does the GDP print indicate about the strength of the US economy?
Sahm Consulting Founder Claudia Sahm deciphers how GDP plays into current economic outlooks as the Federal Reserve juggles its objectives to bring inflation lower.
“Today we got hit, imports had a bigger drag, that’s a very noisy series. Inventories were a little in the play. These are not things that should change our view on the economy,” Sahm tells Yahoo money management. “It’s been strong. It continues, the underlying pace continues to be strong. That’s not bad for the Fed… Frankly, the Fed thinks it can lean on a strong economy.”
Sahm, a former Federal Reserve Board economist for whom the Sahm Rule recession indicator is named after, goes on to say that the Fed and Chair Jerome Powell will “be driven by the data, and there’s a lot of data we don’t have yet.”
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