First Jobs, Now The Economy: US GDP Set For Huge Downward Revision In Thursday's Report

One of the saving graces of the Biden presidency is that while inflation and federal debt were soaring, the labor market and economic growth were both solid; in fact as shown in the chart below, nominal GDP was tracking about $2.5 trillion above the pre-covid trendline, an impressive achievement even if inflation accounted for the bulk of the divergence.

Alas, just as last month's dramatic downward revision in the number of jobs - the second biggest on record, confirming that most of the labor market strength in 2024 had been a pre-election mirage - erased much of the Biden admin's recent "stellar" jobs record...