Ron Insana: Economy Is Stronger than Most People Realize
INSANA: "Well, listen, the economy has grown pretty well. The GDP data notwithstanding, and there were so many quirks in those numbers in the first and second quarter, that nominal or the dollar value of GDP has been quite strong. When you adjust it for inflation, we got those two negative numbers back to back. But we’ve got an economy that is running out of workers, actually. We don’t have enough to effectively fuel further job gains. And the Fed is trying to beat back inflation, which, by the way, is already falling. Gasoline prices have come down 51 days in a row. Other inflation indicators, copper, food prices, all of those are falling as well. So the concern is, does the Fed continue to try to dampen demand and actually push the unemployment rate up to ease any further inflation pressures, or at some juncture do they come to the point and decide that this is kind of a goldilocks environment. We’ve got a lot of good things going on, we’re rebounding, the economy is stronger than most people realize. The only reason it would go into recession, I believe, is if the Fed raised rates too much and slowed the economy too dramatically, barring any other kind of external events that might occur, let’s say, between the U.S. and China or some other factor that could exacerbate some of these supply chain disruptions or growth issues that we see elsewhere in the world."