CNBC host Joe Kernan said the latest GDP record “doesn’t appear as if we’re in a recession,” and wondered if the latest news could portend a “comfortable landing” for the economy.

President Joe Biden — together with many economists, reality-checkers, news outlets, and Fox Information personalities from a couple of years ago — has consistently stated that the 2 consecutive quarters of negative GDP growth don’t necessarily imply the US is in a recession, especially given different certain economic symptoms. But many critics have slammed Biden, suggesting he’s in denial about a recession.

On Wednesday’s variation of CNBC’s Squawk Box, Kernan instructed Biden could have been perfect, at least for now.

co-host Rick Santelli learn off a collection of brand name-new economic numbers that incorporated a 2.6 p.c elevate in Gross Home Product and a significant slowing in a key inflation indicator, the PCE price index:

  • “Real gross home product (GDP) elevated at an annual fee of 2.6 p.c in the 1/3 quarter of 2022 (table 1), in line with the “advance” estimate launched by way of the Bureau of Financial Diagnosis. withIn the 2d quarter, real GDP lowered zero.6 p.c.”
  • “The associated fee index for gross home purchases elevated 4.6 p.c in the 1/3 quarter, when put next with an increase of eight.5 p.c in the 2nd quarter (table 4). The PCE value index elevated 4.2 percent, when compared with a rise of seven.3 p.c. With the Exception of food and vitality costs, the PCE price index elevated four.5 percent, in comparison with an increase of 4.7 percent.”

When Santelli tossed back to the studio, Kernan seen that these warning signs don’t seem like a recession, and requested Stifel Chief Economist Lindsey Piegza if the market response to the file portends a “smooth landing.”

Piegza wasn’t so sure, but referred to as the numbers a “welcome reprieve” and a “feather in the cap” for the Fed:

JOE KERNAN: I don’t know the way to interpret it. Lindsey, I’ll start with you. I don’t know in the event you’ve weighed in yet, however is it conceivable that with the PCE easing a little bit and we’re, doesn’t look like we’re in a recession, that’s a pretty good quantity. Will we extrapolate to, say, some folks suppose a comfortable touchdown is that you can imagine, maybe we are able to elevate charges, perhaps we will carry inflation down slightly, however the economic system can live on? Is that why stocks are up?

LINDSEY PIEGZA: Well, I feel the 0.33 quarter quantity used to be unquestionably higher than anticipated, as Rick laid out. But I’d caution to claim that this is a sign of sustainable upward momentum and extra reflection of static fortify, specifically to the patron, as we noticed decrease gas prices, as we noticed extra state and local stimulus come down the pipeline, consumers an increasing number of willing to draw down what closing savings they have got and turn to credit cards. So I don’t assume that we’re seeing upward momentum in any of the components in the 0.33 quarter file. And in fact, also, as cited, durable goods, once we strip out those other components and look at the the core of trade investment, is starting out the fourth quarter, particularly weak. So I do think this was a welcomed reprieve relative to 6 months of bad increase at the beginning of the year. However this is rarely indicative of power for the underlying economic system. That being stated, it’s going to be a feather within the cap for the Fed, who is concentrated fully on reinstating price stability. And with prices nonetheless close to a four-decade excessive, there is not any indication that they will deviate from the present pathway to higher charges.

Watch above via CNBC’s Squawk Field.

The put up ‘Doesn’t Seem to be Like We’re In A Recession’: CNBC Anchor Says 2.6% GDP Quantity Could Sign ‘Comfortable Landing’ For Financial system first seemed on Mediaite.