How would you assess the economy right now?

[QuarterMillionMan]

Should Jerome Powell assess rate cuts, unchanged, rate hikes, etc? I say let the free markets play itself out for now and adjust as needed.

[disneysteve]

The US economy is the strongest it has been in decades so I don't think any major moves are indicated. Slowly backing off on interest rates, as they've started doing, makes sense. Beyond that, just let it ride and let us keep enjoying the strong performance as long as we can before new policies come along to wreck it.

[ua_guy]

I would assess the economy in the same way all the traditional indicators and metrics currently indicate. It's fantastic right now.

From a personal financial perspective, the markets, growth, and good indicators of the economy are also benefiting me. Inflation is normal, and my increases in income over the same time period have outpaced increases in costs. Things are really great.

[QuarterMillionMan]

I see things differently with $36 trillion in debt, wasteful government spending, inflation is better but not the same. Gasoline is still dropping $3.79 now in Los Angeles. Yes equities are making people a lot of money but the average 9 - 5 worker do not have any investments and living paycheck to paycheck. My coworkers in big government often ask me where or how to start investing or what to invest in. My answer to them is first to pay off their debts and have a 1 year emergency fund then come back to me and ask me the same question after paying off their $30,000 credit card balance or $100,000 student loan if they were not lucky enough to get it forgiven. A husband and wife government workers got forgiven $60,000 & $80,000 in student loans forgiven. They were the lucky ones. They spent $2000 each for concert tickets at the Las Vegas sphere they were so happy. The average 9 - 5 worker is not seeing this economy as great as some of us here are.

[ua_guy]

I see things differently with $36 trillion in debt, wasteful government spending, inflation is better but not the same. Gasoline is still dropping $3.79 now in Los Angeles. Yes equities are making people a lot of money but the average 9 - 5 worker do not have any investments and living paycheck to paycheck. My coworkers in big government often ask me where or how to start investing or what to invest in. My answer to them is first to pay off their debts and have a 1 year emergency fund then come back to me and ask me the same question after paying off their $30,000 credit card balance or $100,000 student loan if they were not lucky enough to get it forgiven. A husband and wife government workers got forgiven $60,000 & $80,000 in student loans forgiven. They were the lucky ones. They spent $2000 each for concert tickets at the Las Vegas sphere they were so happy. The average 9 - 5 worker is not seeing this economy as great as some of us here are.

I think the average 9-5 worker is actually doing fairly well. It's all the people earning less, or who are on fixed incomes, and there are a lot of those people. If "36 trillion in debt" was a primary concern, I doubt people would have elected someone who ballooned the US debt more than any president ever, and who has publicly stated trade policies and other mandates that threaten to increase it even more.

[QuarterMillionMan]

California's taxes are ridiculously high. Gasoline tax is insane. Los Angeles adds 3% to California's sales tax making it 10%.

[myrdale]

Home prices and property taxes are through the roof. My grocery bills that were typically $50 are now $100 or more a week. My utility bills have all doubled. I am still comfortable, but I have friends having to take on extra shifts just to get by.

The national debt continues to balloon exponentially regardless of who is in office. Sooner or later that curve is going to break.

Saying inflation is down is pointless, the rate of inflation is down, but prices compared to 5 years ago are still up and I doubt will ever go back down.

Our economy is an illusion.

[myrdale]

To your original question, I don't have an answer.

[bjl584]

Depends who you ask and what their personal situation is.
On a macro level the economy is doing great.

Personally, I'm doing fine. But I can't speak for everyone.
Not everyone budgets, saves, has investments, or pays attention to or reacts to economic conditions like I do.

[ua_guy]

California's taxes are ridiculously high. Gasoline tax is insane. Los Angeles adds 3% to California's sales tax making it 10%.

I actually don't find California's taxes to be that high, but I come from a high tax state. Where California really hurts is income tax. Highest bracket is something like 10-13%. We don't have income tax in Washington, but property taxes are very high, and sales tax is 9-10% in most populated areas.

Regarding that effect on the economy, the Free State of California is the World's 5th largest economy. Millions and millions of people do very well in the state.

It's almost like the West Coast is pricing people out who aren't extremely hard working and highly skilled. Is it working?

[Fishindude77]

Despite individual situations and inflation, I think it would be pretty hard to argue that the economy isn't doing pretty decent currently.
Lots of investment by private business
Lots of construction starts
Lots of new home starts
High demand for employees
Stock markets chugging along
Reasonable interest rates