Loading ...It will be interesting to see how the Chicago PMI’s and the PCE’s come out in the next hour. The employment numbers will be ugly, a lot having to do with government layoffs. For sure they know this. GDP went negative -0.3%. Not a surprise as treasury through government cuts has withheld $480 Billion out of the economy. The silver lining is inflation. The GDP PCE’s dropped by more than half.
All of this is exactly what needs to happen so that the Fed’s hand is forced to cut rates, and that $480 billion subsidizes massive tax cuts. On the docket so far: No taxes on tips, Social Security, overtime, and they are talking about bringing back the write-off for auto loans. Better if they eliminate taxes for people making under $150K.
If he’s able to pull this off without the neocons dragging us into more war, this economy will roar in a year from now.