Joe Biden SURPRISE – It’s Worse Than We Ever Imagined
(TheRedWire.com) – Since the beginning of 2022, numerous economists have been warning that the US economy could be heading toward recession or even stagflation as inflation continues to hammer Americans’ bank accounts. On Thursday, May 26, the US government reported that the first-quarter gross domestic product declined by 1.5%. It’s the worst GDP report since the second quarter of 2020 when states shut down their economies to combat COVID-19.
The government said the worse-than-expected result was due to weak business and private investments not offsetting strong consumer spending. That situation created an imbalance in the GDP, according to economists.
First-quarter GDP declined 1.5%, worse than thought; jobless claims edge lower https://t.co/rm9l6Bw0Tl
— Laura Ingraham (@IngrahamAngle) May 27, 2022
Most economists initially expected that GDP would fall by 1.3%. Moody Analytics senior director Scott Hoyt said the rest of the year should be a mixed bag of results. He noted the GDP is unlikely to decline the rest of the year but added that growth wouldn’t be nearly as strong because the economy didn’t start reopening until the spring of 2021.
Hoyt noted that the Federal Reserve is aggressively trying to bring down the crushing inflation America is experiencing. As it does so, recession risks are uncomfortably high. Still, a recession may be more likely in 2023 than in the remainder of 2022.
Stay tuned. Things could get a lot worse before they get better.
Copyright 2022, TheRedWire.com