Is The Vibecession Over?

Image Source: Pixabay

A lot of people have been asking “is the vibecession over?” the past few weeks, and with Jerome Powell stated in the FOMC presser yesterday that:

“The staff now has a noticeable slowdown in growth starting later this year in the forecast, but given the resilience of the economy recently, they are no longer forecasting a recession”.

It certainly seems that both the vibecession and the fear of a Recession are somewhat… gone?

Of course, this announcement came with a series of jeers on Twitter from people proclaiming that we’ve been in a Recession since before time even began, but this statement from Powell is good, for those that like data. He then said “we are going to vibecheck the economy before we decide to do before our next meeting 8 weeks from now.” More data. Data-dependent.

But things are looking okay. Growth is moderate. Inflation is cooling. Labor market humming along. Real GDP came in stellar today at a 2.4% annualized growth rate1. Powell even highlighted the vibes.

"I would say that having headline inflation move down that much...will strengthen the broad sense that the public has that inflation is coming down, which will in turn, we hope, help inflation continue to move down."

Rational inattention. The vibes continue to improve.

Video Length: 00:12:08

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