[The unexpected drop in U.S. GDP and its combined causes]
🎯 Recently released economic data is sending complex signals, which are confusing to investors and policymakers.
🗣 Mike :
Consumer spending appears to be a big problem this quarter. A $19.5 billion drop in inventory figures is also one reason GDP growth is lower than expected.🗣 Blarina you Ruchi : The GDP report signals to the Federal Reserve that the economy is still expanding at a solid pace. Consumption growth is about 2.5%, indicating healthy consumers, showing low unemployment claims and strong job growth.

🎯 Analysis of the impact of trade on GDP has not yet been completed, which is an important factor in evaluating the overall economic growth rate.

[Key PCE price index increase and implications]
🎯 The core PCE price index is higher than expected and concerns about inflation persist.

🎯 The number of unemployment claims is lower than expected, suggesting continued strength in the labor market.
🗣 Blarina you Ruchi :
The Federal Reserve is not worried about strong growth numbers and strong employment numbers, and their focus is on inflation.

[Federal Reserve’s upcoming meeting and policy direction]
🎯 The Federal Reserve will closely examine economic data and inflationary pressures at its meeting next week.
🗣 Blarina you Ruchi :
They will remain cautious about the rate cuts they can achieve this year, highlighting upward risks to economic data, labor markets and inflation.