This brief post highlights some under-appreciated news contained in today's revised estimate of Q2/23 GDP. Real growth in the quarter (annualized) was revised down from 2.4% to 2.1%, and inflation (according to the all-encompassing GDP deflator, also annualized) was revised down from 2.2% to 2.0%. We're very much in a 2% growth world, as I noted last May. Inflation, meanwhile, has plunged from a high of 9.1% a year ago to a mere 2.0%. These facts lay bare the false belief that inflation is the by-product of an economy that is "running hot," and that in order to bring inflation down the economy must suffer a period of ... (full story)