No,it’s not just you — the U.S. economy really is bewildering. The government says gross domestic product expanded at an annual rate of nearly 4 percent in the third quarter,the fastest pace in a year and a half. The stock market is still up by 4 percent for this year,despite a sharp 3 percent drop on Nov. 7. On the other hand,growth in consumer borrowing slowed unexpectedly in September. Some economists argue that the U.S. is teetering on the brink of a recession,if it isn’t in one already.
Oil has exploded to nearly $100 a barrel,gold is near an all-time high,and the cost of food is soaring. It seems like high prices are breaking out all over,right? Yet the core rate of inflation is less than 2 percent a year,according to one widely followed measure. Confusion reigns right on up to the Federal Reserve,whose interest ratesetters are openly disagreeing about whether more cuts are needed.