White House Council of Economic Advisers Chair Jared Bernstein stated on Thursday’s spread of” Cavuto: Coast to Coast,” that the White House is fine with the most recent GDP statement because, “especially once you get under the hood, you take out some of those more dangerous components, customer spending and investment look wonderful.” And” the actual market is strong as always”
According to Edward Lawrence, the guest host,” When you look at this GDP report, you find that the first quarter’s personal consumption increased by 2.5 %, the non-defense government expenditure increased by 0.3 %, but the fourth quarter’s non-defense government spending increased by 4.8 %.” Consequently, government spending, was that driving the GDP? Is there a relationship that”?
Bernstein answered,” It’s definitely in the mix, it’s one of the elements, but it gets a mass that’s significantly lower than buyer paying. Consumer spending is 70 % of nominal GDP, add investment, and you’re north of 80 %. Then, if you look at this primary- quarter result, consumer spending, actual and investment along grew at a 3 % annualized rate. And that’s about a primary GDP measure, one that excludes the more volatile inventories, online exports, or perhaps government accounts, which may fluctuate. And that’s why we think the underlying development remains constant, strong, powerful, just like you heard from Esther George a subsequent ago”.
Lawrence next asked,” But, you’re ok with this GDP statement”?
Bernstein responded,” Yeah, I think this GDP report, especially once you get under the hood, you take out some of those more dangerous pieces, consumer saving and investment look great. In fact, season- over- time GDP is off 3 %. That’s a great number. And glance, the average GDP growth rate has been about 3 % since the president arrived. His — GDP over the course of his name is the highest we’ve seen for 25 times in a row during a presidential term. Add in the very solid work market…and I think you understand, the underlying market is strong as possibly”.
Bernstein added,” Come no over- index on one third”. And” as you grow at a rapid pace out of the superbug- induced recession, we have to settle up into more regular, steady growth, and I think that’s one of the things you’re seeing in reports like the one this morning”.
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