Prepare for a short-lived economic boom

Prepare for a short-lived economic boom


The Bureau of Economic Analysis will release its estimate of economic growth for the third quarter on Thursday, and expectations are stratospheric. The Atlanta Federal Reserve suggests that gross domestic product may have grown at an annual rate of more than 5%. Given continued expectations of a slowdown, how is this possible? The answer lies in the unexpected easing of fiscal and monetary policy in 2023.

The financial story is simple. After factoring in the Biden administration’s failed attempt to forgive student loans, the deficit unexpectedly doubled this year to about $2 trillion, according to the Congressional Budget Office. A deficit above 7% of GDP can boost growth, but short of war or a severe recession, this is irresponsible fiscal management, for which we pay the price with lower interest rates. students.

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With a penchant for words, Eleon Smith began writing at an early age. As editor-in-chief of his high school newspaper, he honed his skills telling impactful stories. Smith went on to study journalism at Columbia University, where he graduated top of his class. After interning at the New York Times, Smith landed a role as a news writer. Over the past decade, he has covered major events like presidential elections and natural disasters. His ability to craft compelling narratives that capture the human experience has earned him acclaim. Though writing is his passion, Eleon also enjoys hiking, cooking and reading historical fiction in his free time. With an eye for detail and knack for storytelling, he continues making his mark at the forefront of journalism.
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