EPISODE · Aug 9, 2022 · 17 MIN
Episode 26: The Unseen Cracks in Consumer Demand: Is the Fed Doing Enough to Prevent a Recession?
from KP Talks Dollars and Sense
70% of GDP is consumer demand.75% of that consumer demand is spent on services.Maybe sentiment is negative, maybe credit card debt is increasing, but there's still tons of consumer spending on services, and a lot of our jobs are services.So are we seeing cracks in there? Has the Fed done its job yet?After contracting at an annualized rate of 1.6% in Q1, GDP shrunk in Q2 by 0.9%.The reason inventories reduced the Q2 GDP by two points. Similarly, net exports boosted GDP by 1.43 points after reducing it by 3.23 points in Q1.This is a weakened economy, that's not in a recession yet.Inflation is high and the cost of goods are high. Consumers are still paying for expensive goods because they can and they haven't lost their jobs yet.Stay up-to-date on all the latest news, updates, and exclusive content by following us on all of our social media accounts! https://linktr.ee/kptalksdollarsandsense#KPTalks
Embed this episode
What this episode covers
70% of GDP is consumer demand. 75% of that consumer demand is spent on services. Maybe sentiment is negative, maybe credit card debt is increasing, but there's still tons of consumer spending on services, and a lot of our jobs are services. So are we seeing cracks in there? Has the Fed done its job yet? After contracting at an annualized rate of 1.6% in Q1, GDP shrunk in Q2 by 0.9%. The reason inventories reduced the Q2 GDP by two points. Similarly, net exports boosted GDP by 1.43 points...
NOW PLAYING
Episode 26: The Unseen Cracks in Consumer Demand: Is the Fed Doing Enough to Prevent a Recession?
No transcript for this episode yet
Similar Episodes
No similar episodes found.
Similar Podcasts
No similar podcasts found.