The resilience of the US economy in 2023 has astonished all of us: real GDP increased +4.9% q/q in Q3/2023, the highest level in over 2 years, despite the high interest rate environment and pressure from inflation on consumer spending. However, everything that happens has its reasons.
Truly, praise must be given to the Fed's generous QE policy over the nearly 10 years prior, and especially during the Covid period, which provided abundant savings among the populace and long-term cheap capital for businesses. This has contributed significantly to the current strength of US consumer spending - as emphasized multiple times by Viet Hustler based on available economic data.
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