The 3% Economy—Still Nowhere In Sight

Coincidentally, the BEA reports today that Q4 2017 GDP disappointed at once again 2.6%. That’s down from a revised 3.2% in Q3. It’s considerably less growth than in 2014 that failed to capture the American electorate’s fancy.

The reason for that is very, very simple. None of these numbers represent a significant and meaningful change in economic circumstances. That’s once again the message and interpretation this latest GDP report reinforces. Former Federal Reserve Vice Chairman early on in 2017 said it best, “We haven’t seen 3% growth for a long time.” Last year proved no exception.