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So Much Economic Data!
A recap of the news you should know
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So much economic news to cover since our last labor market update. To help you stay up to date, we have provided a quick summary of things you need to know. As usually, I provide you with a takeaway at the end.
The Fed met this week and decided to keep interest rates steady keeping the federal funds rate Target at 5.25%-5.5%
GDP grew at annualized 4.9% percent in the third quarter of 2023. This is a high growth rate. Most of growth is propped by consumer spending. More on that later…
Job openings are up to 9.6 million. Still lots of demand for labor and another sign of a strong labor market. Jobless claims increased by 217,000. In October the economy created 150,000 new jobs, and the unemployment ticked up to 3.9%.
Some bad news, the savings rate in the U.S fell to 3.4%. Consumers continue to spend their savings down and starting to leverage more credit.
Credit card debt hit $1 Trillion in Q3.
The U.S Economy is being propped by consumer spending. Higher interest rates are increasing the cost of borrowing and reducing the incentive to spend cash. I am not sure how much longer the U.S consumer can keep this up for.