Economy Expands 3.9%, More Than Previously Forecast

The video discusses unexpected growth in GDP and personal consumption, with GDP revised up to 3.9% and consumption to 2.2%. Matt Miller provides analysis, noting the importance of the core PCE inflation indicator, which remains at 1.4%. The Federal Reserve aims for closer to 2% inflation before considering rate hikes. The focus is on inflation numbers and their implications for economic policy.

What was the revised GDP growth rate compared to the original forecast?

• 4.0%

• 3.9%

• 3.5%

• 3.3%

How did personal consumption growth compare to the previous report?

• It dropped to 1.9%

• It increased to 2.2%

• It remained the same at 2.0%

• It decreased to 1.5%

What was the expected GDP growth rate according to the Bloomberg survey?

• 3.3%

• 3.5%

• 3.9%

• 4.1%

What is the core PCE, and why is it significant?

• A measure of GDP growth, important for economic forecasts

• A metric for personal consumption trends

• An inflationary indicator closely watched by the Fed

• A survey of economist expectations

What core PCE rate would make the Fed more comfortable with raising rates?

• 2.5%

• 2.0%

• 1.9%

• 1.4%