The U.S. Bureau of Economic Analysis (BEA) reported Friday that Q1 2022 GDP dropped 1.4 percent and the Q4 2021 GDP was revised to 6.9 percent. Analyst’s pre-report expectations were for a growth of 1 percent.
The drop in GDP comes after the March consumer price index was up 1.2 percent in March over February, and 8.5 percent over March 2021. High inflation and negative growth is the definition of stagflation. The question is, how long will it last and will there be a recession? By definition a recession is two consecutive quarters of negative GDP. While the Q1 GDP numbers were not a positive development by any means, there are some signs that the stagnation in the economy might be “transitory” – to...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
