GDP justifies further help from the Fed
TEXT OF INTERVIEW
JEREMY HOBSON: Now to Chris Low, he’s chief economist with FTN Financial. And he joins us from New York.
Good morning, Chris.
CHRIS LOW: Good morning.
HOBSON: The government reported this morning that GDP grew by 2 percent in the U.S. last quarter, that’s slightly less than expected, but faster than the previous quarter. What’s your take on this?
LOW: Well, faster but maybe not fast enough. I think this one of those numbers for investors as you said are sort of, blah on it. They’re indifferent. It has hit the sweet spot for the stock market because it’s not so weak it threatens recession, but it’s strong enough to justify further help for the economy from the Fed next week. But for the rest of us, waiting for the unemployment rate to go down 2 percent growth isn’t going to do it.
HOBSON: And how do you think it does impact the Fed’s decisions as they try to figure out how much money they’re going to pump into the economy after they meet next week?
LOW: Again, slow GDP growth like this is the kind of thing that justifies more aggressive action from the Fed. The economy clearly needs help. We’re just not going to see the 4 percent growth we need without it. So I think they go bigger.
HOBSON: , Alright Chris Low, Chief Economist at FTN Financial, thanks so much for joining us.
LOW: You’re welcome. Thank you.
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