Consumer Power: How Q4 GDP Reflects Economic Strength | Episode 093 | 01-25-24

Megan Horneman, Chief Investment Officer at Verdence Capital Advisors, breaks down the latest fourth-quarter GDP report in today’s episode. The report exceeded expectations with a 3.3% growth rate, outperforming the forecasted 2%. Consumer strength, contributing 70-75% to the economy, remains robust, while government spending, net exports, and domestic investment play pivotal roles in economic growth. Despite concerns about escalating government spending and a worsening deficit, the Fed finds comfort in the 2% core PCE index. The markets respond positively, aligning with the soft landing view, and the Fed is unlikely to cut rates soon, shifting focus to inflation and employment reports. For questions or feedback, reach out to podcast at Verdence dot com.

Watch today’s episode here: https://youtu.be/RbZ-mZ6S_LI