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?...
Read the full article on Seeking Alpha
For further details see:
Federal Reserve Watch: Surprise Strength