Economic Growth Rates: Good News at a Stressful Juncture
The U.S. economic growth rate hit a high that hasn’t been seen since April of 2010, according to Reuters. The annualized growth rate reportedly remained consistent, and the Weekly Leading Index went up to 132.9 by December 27 from its 131.9 level the week before that. According to Reuters, the index showed an annualized growth rate of 1.8 percent, steady with the week before that.
The economic growth news is a bright spot in a somewhat worried economy, as economists bite their nails over the under-target inflation rates, and the Federal Reserve considers the repercussions from its reduction of its bond purchasing stimulus plan. After the Fed cut the $85 billion per month bond-buying program, some economists are concerned with America’s inflation, saying that the low rate could bode ill.
“By committing to stabilizing inflation over the long run, the FOMC is de facto at least partially stabilizing the price level around a trend line. Such a policy should thus reap some of the benefits of price-level targeting,” said a study from the Federal Reserve Bank of New York.