According to the Atlanta Fed GDPNow forecast model, US Q1 GDP is growing at 6.047%!
The Covid epidemic certainly resulted in a major hit to US GDP, particularly with state and local governments shutting down businesses. But GDP rebounded in the latter half of 2020 as state and local governments eased-back on the lock-downs. But US GDP has settled in at a whopping 6.047% for Q1 2021.
One of the reasons is the staggering growth in money stock (growing at 27.1% year-over-year as of February). The Federal Reserve figures for March will be released on April 27th. But the extreme money printing by The Federal Reserve has crushed the purchasing power of the US Dollar.
If the economy is growing at a hot rate, shouldn’t The Fed slow down its money printing?