Has the 'mystery' of the upward revision of the USA GDP been revealed? The Commerce Department has increased national savings by 500 billion in one month.
The unexpected boost to GDP is due to the US Department of Commerce revising personal income and expenditures, increasing after-tax disposable personal income by 3.8% and expenditures by less than half of the income increase. As a result of this calculation, personal savings have increased from $600 billion in July to $1.1 trillion in August.
Express News | Federal Reserve's Mester: If the labor market weakens further, accelerating the pace of interest rate cuts may be appropriate.
Black Swan Fund: The looming recession in the usa may lead the Federal Reserve to restart quantitative easing.
Tail risk hedging fund Universa warns that the US economy is on the brink of recession, the first rate cut by the Federal Reserve signaling a potential sharp decline in the financial markets, forcing central banks to restart quantitative easing policies. Universa founder Spitznagel believes that high US debt levels and interest rate pressures will lead to an economic collapse on the scale similar to the Great Depression of 1929.
Express News | US Treasury Secretary Yellen said the US economy may achieve a soft landing, former Fed Chairman Bernanke expects another 100 basis point rate cut next year.
Express News | Before the release of PCE data, the probability of the Fed cutting interest rates by 25 basis points in November is 50.1%.
Xinhua News Agency: Interest rate cuts have not significantly boosted demand, "soft landing" still unknown.
"New American Fed Communication Agency" stated that the US economy's soft landing ultimately requires a rebound in bank loans, yet the loan growth rate has almost stagnated over the past year. Many businesses and households have locked in the low interest rates before rate hikes, even though the Federal Reserve is currently cutting rates significantly, the distance to ultra-low interest rates is still far away. People's willingness to borrow is low, and the impact of rate cuts on boosting the economy will be limited.