The US economy is facing challenges as the GDP growth in the first quarter of 2024 fell short of initial estimates. Despite this, Claudia Sahm, founder of Sahm Consulting, believes that the strong underlying pace of the economy is favorable for the Fed.
Sahm explains that while imports and inventories had an impact on the GDP growth, they are not significant enough to change the overall view of the economy. She suggests that the Fed can rely on a strong economy to guide its decisions moving forward. However, she emphasizes that the Fed will base its decisions on data and still has a lot to consider before making any definitive moves.
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