Ignore the headline number — growth rates are slowing.Chief Economist, Michael Gapen, Bank of America, on the latest GDP numbers that reflected more than 2% growth in the U.S. economy over the last three months.
Why It Matters: The GDP reading tells us whether the economy is expanding or contracting. The headline number for the third quarter (July – September) shows growth. However, parts of the report also reflect some weakness (such as decreased consumer spending) and that's why Gapen continued to say this: "It wouldn’t take much further slowing from here to tip the economy into a recession.”
Also – This news broke on Thursday morning as well: "US mortgage rates top 7% for the first time in 2 decades."
by Jenna Lee,