Consumer is tapped out, economy is flashing yellow warning light and the Fed nee... | Hacker News

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		toomuchtodo on July 25, 2024 \| parent \| context \| favorite \| on: US economic growth increased last quarter to a hea... Consumer is tapped out, economy is flashing yellow warning light and the Fed needs to cut now. Lots of spending currently being driven by Boomers running off of assets and paying cash (~40% of consumer spending), but there is only so much of that. Per the Sahm rule and rising unemployment, we are approaching recession territory and the potential for a self reinforcing consumer demand destruction spiral (people lose jobs, pull back spending, more people lose jobs, even more spending gets pulled back, and so forth). https://www.bloomberg.com/news/articles/2024-07-24/share-of-... \| https://archive.today/l6ryx https://www.philadelphiafed.org/surveys-and-data/2024-q1-lar... https://www.bloomberg.com/opinion/articles/2024-07-24/the-fe... \| https://archive.today/xcJP5 https://fred.stlouisfed.org/series/SAHMREALTIME

washedup on July 25, 2024 | [–]

Thanks for theses - I will read! I agree there are still a lot of metrics pointing in the wrong direction.

infotapeworm on July 25, 2024 | [–]

Was about to link some of these. The feds own data certainly does not indicate a "healthy" market.

The fed also changed their own metric for inflation. It's a political play.

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