US GDP Unexpectedly Declined 1.4% in First Quarter; Worst Showing In 2 Years (radical, dollar)
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...The decline in growth came due to a deceleration in private inventory investment, which helped propel growth in the back half of 2021. Other restraints came from exports and government spending across state, federal and local governments, as well as rising imports.
An 8.5% pullback in defense spending was a particular drag, knocking one-third of a percentage point off the final GDP reading.
Consumer spending held up fairly well for the quarter, rising 2.7% as inflation kept pressure on prices. However, a burgeoning trade deficit helped shave 3.2 percentage points off growth as imports outweighed exports.
“This is noise; not signal. The economy is not falling into recession,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics. “Net trade has been hammered by a surge in imports, especially of consumer goods, as wholesalers and retailers have sought to rebuild inventory. This cannot persist much longer, and imports in due course will drop outright, and net trade will boost GDP growth in Q2 and/or Q3.”...
Just a question, will there be a further drop in the GDP when the Fed raises interest rates, as they're preparing to do over the coming months? Higher interest rates = lower GDP, correct?
Not that I mind, I kinda want a recession to be running alongside this nice little inflation we're having, as it'll just make the Red Wave that much taller in November.
194 more days to go for the midterms - ya'll know what to do.
Again, doesn't address the point. The facts listed in that article are reality for everyone, rich or poor.
What's the point?
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