Doom or boom?

"The US economy expanded at a surprisingly strong 4.3% annual rate in the third quarter as consumer spending, exports and government spending all grew." The personal consumption expenditures index (PCE) grew 2.8% annually in the July through September quarter compared to 2.1% in the second quarter, and core PCE, after stripping out volatile food and fuel prices rose 2.9% compared to 2.6% in the Apr-Jun quarter. Despite rising inflation, "Consumer spending, which accounts for 70% of US economic activity," jumped 3.5% compared to 2.5%. PBS. Consumer spending increased to $16589.10 billion in the third quarter from $16445.70 in the second. TE. Consumers are spending despite pessimism about the economy. "The Conference Board said its consumer confidence index fell 3.8 points to 89.1 in December from an upwardly revised 92.9 in November," as "households grew more anxious about high prices, trade levies and job prospects." TOI. "The latest figures from the Labor Department showed prices rose 2.7% over the 12 months to November. That pace was down from 3% in September and lower than many analysts had expected." BBC. The US Federal Reserve did cut interest rates by 25 basis points to 3.5% to 3.75% in December. yahoo. Suprisingly, Prof Nouriel Roubini, who has been labeled "Dr Doom" (wikipedia), because of his gloomy prediction of a global debt crisis leading to stagflation, is unexpectedly optimistic about the US economy. "The US economy's potential will approach 4% by 2030, far above the International Monetary Fund's recent estimate of 1.8%. The reason: America is the world leader in 10 of the 12 industries that will define the future, with China leading in only electric vehicles and other green tech," he wrote in May 2025. Again he wrote, "Among other things, it has been said that higher tariffs will cause a US and global recession;...that America's fiscal and current account deficits will become unsustainable;...and that the dollar will sharply weaken over time." But he expects that "a combination of market discipline, Trump's more sensible advisors and Federal Reserve independence will prevail," and "potential annual growth is likely to increase from 2% to 4% by the end of the decade." Brave, because "JP Morgan Chase CEO Jamie Dimon has cautioned that a US recession could still occur in 2026," although "economic indicators, such as the Sahm Rule, which currently show little risk of a recession." TOI. "The US could turn into a zombie economy if it's not careful," warned Allison Schrager. Zombie or booming economy?