JPMorgan: GDP Growth 'Is Like Running on Red Bull'
*By Michael Teich*
President Trump's top economic advisor Larry Kudlow said this week that economic growth could top [4 percent](https://www.cnbc.com/2018/07/18/trump-advisor-kudlow-says-economic-growth-could-top-4percent-for-a-quarter-.html).
And while JPMorgan ETFs global market strategist Samantha Azzarello agrees, she does doubt its sustainability.
"It’s like running on Red Bull, which you can not do forever," she told Cheddar in an interview Thursday.
The economy is getting a jolt from tax cuts, government spending, and high consumption. But trade tensions have weighed on the markets recently, and as Azzarello explained, we're late in the cycleーthe bull market turned 9 years old in March, its longest ever run.
"There's fatigue with this bull market, which is bizarre. We should feel good that the earnings growth is so good," she said.
"If you contrast the earnings data, which is so positive and so strong, with how much the market is up, it literally doesn't make any sense."
For the full segment, [click here.](https://cheddar.com/videos/u-s-economy-running-on-red-bull-but-wont-last-says-market-strategist)
Today is National Doughnut Day! Cheddar News celebrated with Steven Klein, the owner of Dough Doughnuts in New York City, who joined us with some delicious samples from hibiscus flavored to ube cheesecake. "It's a fun fest that people love doughnuts, and it's a way of celebrating doughnuts that people just want to try, and they want to try with their friends, their offices, their parties, their groups," said Klein. "So we get inundated in all our stores with lines of people coming to buy multiple doughnuts to celebrate the day."
U.S. employers added 390,000 jobs in May, extending a streak of solid hiring that has bolstered an economy under pressure from high inflation and rising interest rates.
The White House is earmarking $2.1 billion to help secure the nation's food supply, amid widespread shortages due to the pandemic, Russia's war in Ukraine, and rising inflation. The Biden administration's plans are expected to shore up food infrastructure and distribution while also aiding farmers. Bread for the World Senior International Policy Advisor Abiola Afolayan joined Cheddar News' Closing Bell to discuss.
Concerns about economic growth are weighing down sentiment on Wall Street, as investors also monitor the uncertain impact of the Federal Reserve's quantitative tightening - the process of reducing its $9 trillion balance sheet it built up over the course of the pandemic. The Fed's QT is meant to normalize monetary policy while bringing down inflation, something the White House calls a 'top economic priority.' As Americans cope with higher prices for everyday essentials, Treasury Secretary Janet Yellen admitted that she was wrong about inflation being 'transitory,' as extenuating factors have caused inflation from the pandemic to worsen. JPMorgan CEO Jamie Dimon also weighed in on inflation and the state of the economy, warning investors to brace for a so-called economic 'hurricane' due to impacts from inflation and Russia's war in Ukraine. The still-tight job market is putting pressure on the economy as well, as the latest JOLTS report shows job openings in the U.S. are down from record highs but remain high.
President Biden and Federal Reserve chair Jerome Powell meet at the White House today for the first time since Powell's renomination to the position. The President and the Fed Chair discussed the economy and historically high inflation, as new data shows inflation may be cooling slightly. Morning Consult economic analyst Jesse Wheeler joins Cheddar News' Closing Bell to discuss how the Biden administration at the U.S. central bank can work together to combat soaring prices for American consumers.
Gene Goldman, Chief Investment Officer at Cetera, joins Cheddar News' Closing Bell, where he breaks down the reasons behind Thursday's bounce-back performance on Wall Street. Goldman also provides a dose of investing advice, highlighting the sectors he's favoring right now.
David Scranton, CEO and Founder of Sound Income Strategies, joins Cheddar News' Closing Bell, where he provides his insight into why markets ended Wednesday's session lower and hones in on what he's looking for when it comes to the Fed combating inflation.
