Worse still, the US economy is just too healthy. It is somewhat ironic that this means that the US economy is refusing to respond, as expected, to increasing interest rates.
On Friday, 24th Feb, Time Magazine summed things up neatly:
"The numbers keep rolling in to confirm: things look very good in the U.S. economy.
Spending by U.S. households rose 1.8% in January from the previous month, the Commerce Department said on Friday. Employers added half a million jobs in January, more than twice as many as economists had predicted. Retail sales jumped in January at a higher rate than they had for nearly two years.
You’d think it would be time to kick back, sip a martini, and celebrate. But it’s not.
The continued strength of the U.S. economy means the Federal Reserve’s efforts to slow inflation by increasing interest rates are not working as quickly as they’d hoped. Inflation rose 5.4% in January from a year ago, according to data from the Fed’s preferred index released Friday.
The Fed wants inflation to be around 2% and will keep increasing interest rates until it gets near that target."
We can only hope that the Australian economy reacts differently, and/or that the battery electric vehicle investment strategy strengthens with increased vehicle sales and growing structural deficit in the electric battery metals.
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