Wis. (WLAX/WEUX) – The U.S. economy showed growth in its latest quarter. Good news, but there are still storm clouds on the horizon, which is why the economy is still the number one issue as voters head to the polls in the midterm elections.
America’s Gross Domestic Product grew more than expected at two-point-six percent in the third quarter. The good news follows two-quarters of a contracting economy.
Analysts say this should be a sign to the Federal Reserve to stop aggressively raising interest rates and risking a damaging recession.
“I think the bulk of the inflation is behind us and that’s why I think the fed being too tight is really very bad for our economy.”
At the top of voters’ minds heading into the midterms in less than two weeks is the economy, what it costs to live daily lives.
“I think that we’re going to see one more shift back to our side, the closing days. And let me tell you why; I think that we’re starting to see some good news in the economy. We’re moving in the right direction.”
A big expense for consumers has been fuel. Triple-A shows that while gas prices have been consistently falling, diesel has not. In fact, it has gone up compared to a month ago.
And when comparing gas and diesel a year ago, diesel has not returned from summer price highs.
“Not only are we ready for fluctuations that could come and of course, the prices are going down and we think that’s important, but we are also doing what we can to help our European friends and partners who are also going to be facing a long, cold winter.”
The Federal Reserve is expected to again raise interest rates next week. Deutsche bank economists say the U.S. will likely be in a moderate recession mid-next year.