We are revising up our outlook for US real GDP growth – Moody’s

As per the latest summary from the global rating giant Moody’s, US economic growth is likely to accelerate further and pose “the strongest two years of growth since 1950-1951 at the height of the post-World War II economic boom.”

The analysis expects 7.0% read GDP for 2021 and 5.0% for 2022 while citing a pick-up in inflation, tight labor markets and strong wage growth.

Moody’s also expects the first rate hike from the Federal Open Market Committee (FOMC) to take place after 2023. 

“Spiking commodity and industrial prices should also settle down later this year as the supply-side of those markets rebound and scrambled supply chains are straightened out. Having said this, inflation is unlikely to moderate as much as Fed Chairman Jerome Powell seems to be suggesting,” also said the piece.