🦧 powell can be wrong sometimes
💡 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
⏰ well, 18 hours later…
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, that’s a popular definition of a recession…
the consensus estimate was an increase of .4%!
💡 something im thinking about
![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F2b438e30-d0d6-40c2-8d21-18fd6b05ea6c_3300x1017.png)