Paula Newton: Economy Grew 2.8% in Q2, ‘Inflation Is Really Under Control’

SIDNER Right We just ░░░░░░░░ these numbers on U ░░░░░░░░ economic growth coming in ░░░░░░░░ than expected in the ░░░░░░░░ quarter CNN s Paula ░░░░░░░░ joins me now to ░░░░░░░░ down the numbers for ░░░░░░░░ Is there cause for ░░░░░░░░ or optimism NEWTON This ░░░░░░░░ game on Sara This ░░░░░░░░ surprises me 2 8 ░░░░░░░░ so significant because the ░░░░░░░░ is still firing on ░░░░░░░░ cylinders and yet inflation ░░░░░░░░ really under control I ░░░░░░░░ you to look at ░░░░░░░░ chart now on what ░░░░░░░░ been going on This ░░░░░░░░ course was from in ░░░░░░░░ April to June SIDNER ░░░░░░░░ NEWTON If we look ░░░░░░░░ what it did in ░░░░░░░░ you ll see there ░░░░░░░░ was at 1 4 ░░░░░░░░ Look at this increase ░░░░░░░░ Q2 2024 That is ░░░░░░░░ incredible growth in the ░░░░░░░░ In terms of putting ░░░░░░░░ in perspective though when ░░░░░░░░ s looking at this ░░░░░░░░ everyone consumer spending American ░░░░░░░░ continuing to spend spend ░░░░░░░░ even on discretionary items ░░░░░░░░ Yeah NEWTON And that ░░░░░░░░ significant when people look ░░░░░░░░ the robustness of the ░░░░░░░░ economy Sara I don ░░░░░░░░ have to remind you ░░░░░░░░ that interest rates are ░░░░░░░░ a generational high SIDNER ░░░░░░░░ NEWTON People thought that ░░░░░░░░ if this came in ░░░░░░░░ than expected there was ░░░░░░░░ chance that maybe next ░░░░░░░░ Jerome Powell would lower ░░░░░░░░ rates That s completely ░░░░░░░░ the table now I ░░░░░░░░ almost guarantee that You ░░░░░░░░ are looking at an ░░░░░░░░ rate decrease in September ░░░░░░░░ That s because inflation ░░░░░░░░ fact was low in ░░░░░░░░ last month I mean ░░░░░░░░ you are high fiving ░░░░░░░░ morning the American economy ░░░░░░░░ is incredible that the ░░░░░░░░ is moving this way ░░░░░░░░ inflation is seemingly under ░░░░░░░░ And in terms of ░░░░░░░░ way this plays politically ░░░░░░░░ also have to think ░░░░░░░░ that The certainly White ░░░░░░░░ will be doing a ░░░░░░░░ lap as will both ░░░░░░░░ vice president and the ░░░░░░░░ this morning It is ░░░░░░░░ news though We are ░░░░░░░░ on that American consumer ░░░░░░░░ so many analysts that ░░░░░░░░ looking at the American ░░░░░░░░ thinking hmm are they ░░░░░░░░ down their spending They ░░░░░░░░ not Look at that ░░░░░░░░ 2 8 percent Again ░░░░░░░░ also some good robust ░░░░░░░░ in manufacturing All of ░░░░░░░░ playing in well to ░░░░░░░░ political season if you ░░░░░░░░ at the White House ░░░░░░░░ now SIDNER It s ░░░░░░░░ because so many people ░░░░░░░░ still complaining and rightly ░░░░░░░░ over the cost of ░░░░░░░░ But you re saying ░░░░░░░░ are still spending even ░░░░░░░░ discretionary items NEWTON They ░░░░░░░░ There s been a ░░░░░░░░ pullback but really it ░░░░░░░░ not been significant And ░░░░░░░░ issue here people still ░░░░░░░░ jobs The unemployment rate ░░░░░░░░ up a little bit ░░░░░░░░ 4 1 percent But ░░░░░░░░ general this is an ░░░░░░░░ in good equilibrium that ░░░░░░░░ still growing SIDNER Paula ░░░░░░░░ thank you so much ░░░░░░░░ I m just glad ░░░░░░░░ have good news for ░░░░░░░░ Sara SIDNER I m ░░░░░░░░ glad you came You ░░░░░░░░ up with good news ░░░░░░░░ re welcome back any ░░░░░░░░