Mark Vidal focuses on US economic growth in his ‘Emergency Exit’. “It exceeded market expectations and reflects the strength of its economy despite the global environment. We are talking about 4.9% GDP growth, which was 2.1% in the second quarter.. This tells us that America has turned a corner in its economy.
One of the reasons for this departure is an increase in household spending due to a possible recovery in consumer confidence.. Another reason is the commercial cost of goods, Central government spending, investment in housing, improved employment and exports.
“Let everything grow.”“It indicates that the economic recovery is stronger and more broad-based than initially thought.”. This bonanza needs to be analyzed by the Federal Reserve, the central bank of the United States.
“It will affect our domestic economy.”
Therefore, if the economy grows but does not increase prices, the FED’s action will be “correct.” However, if inflation is not controlled, “there will be more restrictions on credit and higher interest rates. That will affect our domestic economy.”
If the FED sees the economy not slowing down and raises rates further, “the dollar will be more attractive to the investor because it is more profitable. It will weaken our euro, which will be forced to pay.” Usually, when that happens, the ECB follows this with some ‘hikes’ here. opposes US escalation.”
Economics, Vidal reflects, is because “we can never say that everything is going well, or everything is going badly. “The fact that America is doing well is good for international trade because it is a complete and integrated consumer.”
But if it goes well, it could lead to a rate hike. So, let’s see what happens. But today undoubtedly, growing more than expected means that “we have the opportunity to open our own ’emergency exit’,” concludes Mark Vidal.
