In the fourth quarter of 2021, the US economy grew by 6.9 percent on an annualized basis.
Economists participating in the survey expected growth to be 5.5 percent.
The country’s economy had grown by 2.3 percent in the previous quarter.
Personal consumption in the United States increased by 3.3 percent in the fourth quarter of last year, according to data. The expectation for this data was determined as 3.4 percent.
The effect of the increase in stocks and domestic consumption was felt in the strong growth performance of the country.
The indicator that the Fed pays attention to is in line with expectations
The GDP price index increased by 6.9 percent in the last quarter, exceeding the expectation of a 6 percent increase.
The core PCE, which is closely monitored by Fed officials, increased by 4.9 percent quarterly, as expected.
Powell also pointed to a strong growth performance for the last quarter
Fed Chairman Jerome Powell, who appeared before the members of the press the day before the data were announced, also made positive statements about the country’s growth performance and employment market in the last quarter.
Stating that economic activity expanded strongly last year, Powell said that financial and monetary policy support also indicates that the economy is resilient, along with the healthy financial conditions of households and businesses.
Stating that the job market has made very good progress and employment growth has remained strong in recent months, Powell said, “The unemployment rate has decreased sharply. The improvement in labor market conditions has spread to the base. Although employers have difficulty finding employees, wage increases have occurred in a way that has not been seen for years.”
Stating that the rapid increase in Covid-19 cases in the last period will suppress economic growth in the first quarter of the year, Powell stated that due to the pandemic, expenditures in the restaurant and tourism sector have decreased, and activities, in general, will be affected due to the disease.
Powell said, “Health experts state that the Omicron variant does not have as severe effects as the previous variants. If such progress occurs, the economic effects of the pandemic will also decrease. Thus, we will achieve faster growth.”
