Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why GDP Growth Slowed but Jobs Stay Strong
In this episode of The Macro Memo, Lucas and Luna unpack the strange divergence in the latest US economic data. Real GDP growth dropped to an annualized 1.5% in the second quarter, down from 2.1%, yet the unemployment rate fell to 4.2% and payrolls kept adding jobs. They explore possible explanations, including labor hoarding and productivity shifts, and discuss what this puzzle means for the Federal Reserve's policy path. With core inflation still running around 3.3%, the Fed holds steady at 3.63%, but the bond market is sending mixed signals—the ten-year yield at 4.66% and the two-year…
The skinny
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