in today's video I have breaking news for you the GDP revised report was released this morning August 29th GDP for Q2 has been revised upward to 3.0% so the government says that the economy is doing better than they thought because of the resilient consumer so that was the headline by Bloomberg but here's the official news release from the government the Bea Bureau of economic analysis okay so to summarize according to the government reports which is is totally unreliable in my opinion Americans are thriving the economy is booming like we're living we're living the American dream so 3% GDP growth is amazing and we should be grateful so take a look at this this is the GDP growth for the past 3 years so look at how much better the economy is right now compared to q1 of 2024 so look at that jump this is great now let me tell you why I'm having a little bit of difficulty believing the accuracy of this report that's a nice way of saying it so the data for the labor market was released recently I dedicated an entire video to this so the government was saying this whole year even last year how robust and how strong that the labor market is and then they released a report just a few days ago saying that they were wrong about the numbers they made a downward revision of 88,000 jobs over the past 12 months so they over stated job growth by 38% so how do you get the numbers Wrong by that much that was the biggest downward Revision in the past 15 years so when I read a report like this saying that GDP growth is at 3.0% you have to take it with a healthy dose of skepticism because the labor market is not as good as they say it is and the economy is clearly not as good as they say it is and I don't know about this whole resilient consumer I would better describe it as the paycheck to paycheck consumer the Hang On by thread consumer or the can't afford to buy a home consumer so listen I know that not everyone is struggling yes there's exceptions but millions of Americans are and the economy is not booming okay so I've been saying this about the labor markets and I know that a lot of people have agreed and said the same thing so we've been saying that and then we get hit with that big downward revision so it's the same thing with the GDP so GDP there will be another revision for Q2 so the way it works is they give the preliminary numbers and then the revised numbers and then the final numbers so one more revision and who knows what that report is going to say now according to this revised GDP report here the stats the here the highlights I'm just going to read these off so in Q2 of 2024 corporate profits jumped massively it went from 2.7% in q1 to positive 1.7% in Q2 so the report says that real GDP accelerated because more private investment in inventory and consumers are spending more money consumer spending grew at a faster Pace than expected q1 it was at 1.5% Q2 is at 2.9% so this exceeded the expectation of 2.3% so here are the reactions from the experts after this revision KPMG Chief Economist tweeted gdps upward revision reflects stronger consumer spending on the heels of cooler inflation consumers are not defeated Chief Economist at co America Bank said the GDP revision shows that the US economy is in good shape solid growth of consumer spending propelled the economy forward in Q2 increased consumer confidence will Propel growth in the second half of this year okay now we have many pieces of the puzzle and here's the story uh I'm not saying that it makes sense but this is what they're saying they're saying that the labor market is deteriorating they're saying that the deterioration started a while back but this report says that the economy and the consumer is very strong how strong very strong so the Federal Reserve says that they are now more concerned about the labor markets than they are about inflation right so therefore it's most likely that they're going to cut interest rates at their next meeting on September 18th now this will get very interesting so not in a good way but I would describe it as interesting as in like watching a train wreck if the economy is growing at a rate of 3.0% right now then what's going to happen to the economy when the Federal Reserve starts to cut interest rates and starts printing money at an acceleration rates like if you don't know then well we're about to find out very soon regarding inflation I want to tell you this to set your expectations so when the Federal Reserve starts cutting interest rates and when they start printing money faster inflation will not Spike immediately no there's going to be a lag so it's going to take some time to run its course through the system so I do expect it to re accelerate in 2025 I I expect it to be you know the re acceleration to be in full swing in 2026 but you know how it is who cares about the long run it's all about today let's live in the now so what a world we live in right again it's going to get very interesting Please 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