š” what happened yesterday with the fed (and powell)?
the fed announced a .75% interest rate hike
us equities, especially tech shares soared after the news at 2pm during the day, as a lot of uncertainty was resolved because 0.75% was the overall consensus
that puts the benchmark lending rate at 2.25% - 2.5%
fed chair jerome powell said more increases could be "appropriate" in the future, maybe even another hike just as big as this time, but that's a little later into the future, so that's for a later time
powell also said:
"I don't think the economy is in recession right now," rejecting speculation that the us economy is in recession
ā° well, 18 hours laterā¦
q2 us gdp was released, and no, powell, we are in recession
real gdp decreased at an annual rate of .9% in q2, which makes it two consecutive quarters of declining gdp
now, thatās a popular definition of a recessionā¦
the consensus estimate was an increase of .4%!
š” something im thinking about
