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Waller On GDP and GDI Difference

FED
(Paraphrasing)
  • Q: How are you thinking about a potential 2nd quarter contraction of GDP?
  • A: There is a divergence between GDP and GDI, the latter going up and GDP going the other way. At some point have to be data revisions, and usually expect them to go somewhere in the middle, so GDP could be revised up and GDI down. It’s really odd to think of an economy which has added 2.5million workers [in five months to May] and the economy goes down.

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