GDP is up, but not enough
TEXT OF INTERVIEW
STEVE CHIOTAKIS: Word this morning that the nation’s economy grew at a 2 percent clip — annual rate for the last three months. That’s a little less than analysts were expecting.
Jill Schlesinger is editor-at-large at CBS/MoneyWatch. She’s with us live from New York, as she is on Fridays. Good morning Jill.
JILL SCHLESINGER: Good morning.
CHIOTAKIS: Give us some perspective on this 2 percent GDP.
SCHLESINGER: I know its sort of sounds like stinky growth. But remember we saw a contraction — a minus 6.8 percent just two years ago at the depths of the great recession.
CHIOTAKIS: Alright so we’re in a recovery period right?
SCHLESINGER: Absolutely.
CHIOTAKIS: How does this rate as recoveries go?
SCHLESINGER: In the four quarters since the recession ended, growth has been up about 3 percent. Now that sounds good, but its almost half the 5.9 percent expansion we have seen in total post-war recoveries.
CHIOTAKIS: Alright. You’re glossing over all these numbers. So what needs to happen Jill, to get the economy revving on all cylinders?
SCHLESINGER: Well, that’s what the Federal Reserve is trying to figure out. And when they meet next week it’s expected that they’re going to announce that they’re going to buy a bunch of U.S. Government bonds to help spur the economy. We don’t know if it’ll work, but we think it’s on the road to recovery. Buying bonds. We’ll see.
CHIOTAKIS: We’re going to see. That they’re going to do that next week after the midterms right?
SCHLESINGER: Right on.
CHIOTAKIS: Jill Schlesinger with CBS/Money Watch in New York. Jill thanks.
SCHLESINGER: Take care.
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