The final three months of 2021 got a much better scorecard than economists had predicted: GDP grew at an annualized rate of 6.9% in the fourth quarter.
It was a substantial uptick from the Delta-ridden third quarter, GDP grew at an annualized pace of only 2.3% .
In fact, it was the best quarterly performance since the third quarter of 2020 when the initial reopening boom buoyed economic growth.
High growth, high inflationBut it wasn't just the growth rate that jumped last year.
In the fourth quarter, PCE inflation was 6.5%, the biggest jump since the third quarter of 1981.