The Bureau of Economic Analysis released its preliminary estimate of real GDP growth for the third quarter of 2022 this week. The Concord Coalition is presenting the story in a series of charts—because a picture is worth a thousand words.
The Federal Open Market Committee of the Federal Reserve will meet on November 1-2 to discuss the path of future interest rate increases and the growing possibility of a recession–both here and abroad. Inflation and wages may be rising too fast for Fed’s comfort, but third quarter GDP suggests the rate increases are having an effect on consumers and businesses, albeit with a lag. It will be interesting to see if the slowdown in consumer spending and business investment in the third quarter prompts the Federal Reserve to throttle back the pace of future rate increases–or stay the course to maintain credibility as an inflation-fighting machine.