Groundwork Celebrates Strong Economic Growth, Urges Chair Powell to Rethink Fed’s Approach

October 26, 2023

Groundwork Celebrates Strong Economic Growth, Urges Chair Powell to Rethink the Fed’s Approach

Today, the Bureau of Economic Analysis released an estimate that found real GDP grew 4.9% on an annualized basis in the third quarter of 2023 – another very strong quarter in this historic, rapid recovery. Groundwork’s Acting Executive Director Kitty Richards reacted to today’s GDP data ahead of next week’s FOMC meeting:

“Today’s GDP data should be celebrated as a victory for workers and families who are powering our economy to a historic recovery. This data should also be seen as a direct rebuttal to the outdated theories about inflation and monetary policy that still hold so much sway in Washington.

“The Fed’s incredibly rapid and severe rate hikes over the past year and a half were supposed to bring down inflation by throwing people out of work and shrinking paychecks to reduce economic demand. Instead, despite the Fed’s efforts, we’ve witnessed rapidly declining inflation and a rapidly growing economy, along with one of the strongest labor markets in history. This booming economy is fueling a wave of labor action and empowering workers to demand their fair share. But it will take time to undo decades of stagnant wages and declining bargaining power.

“As the Federal Reserve prepares to convene next week, it’s crucial that Chair Powell rethink his approach in light of the data and not use good economic news as a reason to punish the workers and families driving our economy.”

Email to speak with Kitty Richards about today’s GDP numbers.