US financial system reveals indicators of progress amid fears of recession


Some mixed messages on the economy here at home Wall Street received good news on Thursday the GDP beating expectations but it comes as we hear about layoffs especially at tech companies NBC's Tom Costello is here to tell us what it all means Tom a little confusing a mixed bag so is this good news for the economy or bad news yeah mixed news but the bottom.

Line is that the data shows the economy remains resilient at least for now anyway uh and a mixed bag but here's the good news concerns of course about the potential recession they continue to loom but that 2.9 percent GDP stat was better than expected at the end of 22 the economy still growing as of the end of December another good sign consumer.

Spending was still strong and most indicators suggest inflation is cooling it's well off the 40-year highs that we saw mid-year we also got good news on the jobs front new jobless claims last week were lower than expected but as the Federal Reserve has raised interest rates seven times now to tame inflation we we are seeing layoffs especially a.

Big wave of layoffs in the tech sector and others too including Dow Chemical IBM and Hasbro overall there are still more jobs than workers to fill them the unemployment rate's still at a 50-year low so a real mixed bag as you said layoffs but a low unemployment rate rise in interest rates but still solid economic growth so far yeah you talked.

About good news on consumer spending what about the ways Americans are saving what are you learning well the evidence suggests that people are starting to burn through their cash reserves and are now building up credit card debt and the concern is that people who have been laid off could quickly burn through those cash reserves and any Severance.

They get so Rising credit card debt really is not a good sign for the economy so here we go again with the FED they're deciding on whether or not they should raise interest rates what do you think will happen quarter point uh hike another one is expected next week and most economists most experts think we could see yet.

Another hike after that that may be it but the economy is clearly Cooling and the concern is that if the FED hikes too many times uh the economy could turn negative we could go into a recession sometime this year but again at the end of last year strong economic growth so really kind of a head scratcher all right Tom Costello for us there in D.C.

Tom thank you hey thanks for watching don't miss the Today show every weekday at 11 A.M Eastern 8 Pacific on our streaming Channel today all day to watch head to all day or click the link right here

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3 thoughts on “US financial system reveals indicators of progress amid fears of recession

  1. The stock market is a technique to hedge in opposition to inflation. Most particularly amidst recession, merchants must realize where and discover how to allocate funds to hedge in opposition to inflation and aloof gain earnings.

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