QQQ - Federal Reserve Watch: Surprise Strength
2024-01-28 11:28:17 ET
Summary
- Real GDP growth for 2023 was 3.1%, surpassing the average growth rate of 2.4% during the 2010-2019 period.
- The Federal Reserve's quantitative tightening has kept markets calm despite the excess liquidity in the banking and financial system.
- The banking system currently holds $3.5 trillion in reserve balances with the Federal Reserve, indicating the presence of a massive amount of liquidity.
The year 2023 ended with a surprise!
Real GDP growth for 2023, year over year, came in at 3.1 percent.
How good was this?
Well, U.S. growth during the 2010-2019 period only averaged 2.4 percent.
And, the Federal Reserve has taken on the monetary posture of quantitative tightening since March 2022. What is going on here?...
Federal Reserve Watch: Surprise Strength