According to the Atlanta Fed’s GDPNow forecast, US GDP forecast for Q4 is 7.541%. This combined with elevated U-3 unemployment (6.7% thanks to state and local government shutdowns) and slowing growth for low-wage workers (those most impacted by government shutdowns) shows that the US economy is still strong. Despite the AP saying “Biden inherits damaged economy, with signs of hope emerging”.
FHFA’s purchase-only house price index is soaring at 10.2% YoY, thanks in part to massive money printing by The Federal Reserve (25.4% YoY).
The Biden Administration is already altering the employment landscape by cancelling the Excel Pipeline deal (killing 10,000 jobs) and trying to raise the minimum wage to $15 per hour (that the CBO claims could cause 3.7 million jobs to be lost). Let’s see how Biden and Company regulate their way to economic growth. /sarc
And good luck trying to increase homeownership rates with historic low housing inventory and skyrocketing home prices.