Earth to Fed! Nominal GDP Surges Over 8% in Q3

Joe Carson
Dec 23, 2025
1 min read

Nominal GDP increased at an annual rate of 8.2% in Q3, after a 6% annualized rise in the previous quarter. These consecutive strong increases in nominal economic activity are the largest since 2022. Monetary policy affects nominal spending, and the Nominal GDP/Fed Funds rule suggests that the current monetary policy stance is "far too easy". GDP price Index +3.7%. Earth to Fed!

Recent Posts

Warsh & Greenspan Agree: Asset Prices Are Important for Monetary Policy

Kevin Warsh's nomination for the position of Fed chair generated some unease and uncertainty on Wall Street. This wasn't because he was notably dovish or overly hawkish on monetary policy, but because

Something Seems Off! Q4 GDP at 5%, Despite No Growth in Manufacturing, Housing & Few New Jobs

If you rely on the GDP estimates from the Federal Reserve Bank of Atlanta's team, the US economy is performing the improbable by growing well beyond its potential, despite two key sectors experiencing

Fed Chair "Words" Matter

During this week's press conference, Fed Chair Powell inserted himself and the Fed into the discussion about payroll job measurement. Powell stated that there is a "systemic overcount" of payrolls, es

Earth to Fed! Nominal GDP Surges Over 8% in Q3

Recent Posts

Comments

Stay in the know