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raising interest rates five times this year to combat inflation. and even with this new report, economists say people should still be bracing for the possibility of a recession in tough times ahead. so let s get to the new report and what it means and what is it doesn t. matt egan is here. and what does this good news say about what is next? well, kate, not that much. this is a rearview mirror number. it is a snapshot in time. we know the economy got knocked down in the first half of the year, but it got back on its feet this summer. gdp rising 2.6%. that is solid. consumer spends slowed but it is still positive. i think that this should silence the argument that the u.s. economy is already in recession. right. gdp is positive, the jobs market keeps chugging along. new numbers show that initial jobless claims which is a proxy for layoffs, they remain low. at pre-covid levels. how you could have a recession if you don t have playoffs. this is so confusing. because ....
And evidentitior for the financial times and the author of the book. rona, it is great to see you. what do you see the last good news before the bad news sets in or just good news? well, look, kate, your comment that two things could be true at same time is absolutely spot on. you know, we ve got growth. it is clear that we are not in a recession. but we haven t had a recession, and if you talk about covid, that is very unusual. so it would be extremely unusual if we didn t see some slowdown. i think next year. i agree that there is nothing in this report that is going to make the fed change directions. and the interest rate hikes are doing what they re supposed to do which is to tam pen down the economy and dampen consumer spending. that doesn t feel great. we see rising interest rates for ....