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Business Optimism Crashes (EP.307)

Animal Spirits Podcast

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The Probability of a Rate Hike

The Atlanta Fed now cast of real GDP growth into in Q2, 2023 is 2.7%. If the Fed will stop at 3% or 4%, maybe we would just be in the same situation and it just wouldn't be as expensive for people to borrow. San Francisco Fed has approximately $500 billion of excess savings remaining in the agate economy. Should the recent pace of drawdowns persist, excess savings would likely continue to support household spending at least into Q4.

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