Creighton University Economist Ernie Goss still sees a potential backward step in the economy overall on the horizon. Goss says he thinks it’s the beginning of the sinking of a stone, but it’s going to take a while. Goss holds no bars and says, …” the federal government is running a deficit that could choke a horse. It’s a wartime deficit in a peacetime economy”. So what’s held up is government, government employment. He adds that he’s not saying government’s a bad thing, but it’s where the government, the Federal Government particularly, is spending. Goss says that the U. S. is seeing more and more growth. He uses Kansas as an example, where the state has nearly double the growth in government jobs as opposed to non-government jobs. Not what we want to see according to Goss.
The Federal Reserve meets this week, but Goss isn’t sure we will see any rate cuts. Europe’s Central Bank cut interest rates last week. He says barring a downturn, the U. S. is looking at higher interest rates in 2025; however, Goss does think the economy is too weak to be raising rates, so the fed will probably stand pat for now.
