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No Top in Sight, Chinese Stocks Explode, Nick Colas and Jessica Rabe on the Fed Cut

The Compound and Friends

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*Gas Prices, Economic Stability, and growth Correlations *

The GDP Now model from the Atlanta Fed indicates that economic growth for Q3 is tracking between 2% and 3%, signaling stronger performance than economist estimates and suggesting economic stability. This growth figure remains flat, bolstered by stable incoming data, with a recent spike attributed to unexpected retail sales. Gasoline demand data reveals that the U.S. consumes about 9.5 million gallons daily, with a recent uptick in demand compared to the previous year, particularly as gas prices decline. Lower gas prices have mitigated potential recession risks, as historically, rising gas prices correlate with economic downturns. Stronger gasoline demand, coupled with reduced prices, suggests a healthier economy, indicating that the conditions for a recession are less likely in the current climate.

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