First-quarter economic growth revised down slightly to negative 1.5% annual rate

[mystery-ak]

First-quarter economic growth revised down slightly to negative 1.5% annual rate
by Zachary Halaschak, Economics Reporter |
 | May 26, 2022 08:31 AM

GDP fell at a 1.5% annualized rate in the first quarter of 2022, a revised estimate from the Bureau of Economic Analysis showed Thursday morning.

The decline in inflation-adjusted GDP is a major reversal from the previous quarter, when growth soared to a 6.9% rate as businesses began healing faster from the pandemic as restrictions were lifted.

The first quarter of this year marks the first such contraction since the second quarter of 2020, when the economy suffered from the enormous shock of coronavirus shutdowns.

The decline in GDP for the first part of this year fueled anxiety among some economists that a recession is around the corner.

"While we still expect the Fed to steer the economy toward a soft landing, downside risks to the economy and the probability of a recession are increasing," economists from Oxford Economics said after the report was released.

The country is being plagued by explosive inflation, with consumer prices increasing by 8.3% in the 12 months ending in April. As a result, the Federal Reserve has embarked upon a historic interest rate hiking cycle designed to slow the economy and tame the rising prices.

more
https://www.washingtonexaminer.com/policy/first-quarter-economic-growth-revised-down-slightly-to-negative-1-5-annual-rate

[Kamaji]

Here comes the stagflation ...

[Wingnut]

Bidenomics.  Watch me take a robust economy into a recession in only 490 day.  C'mon man, you knew I could do it.  The only campaign promise I have kept!

[mystery-ak]

Great news from CBO: High inflation to continue into 2024; Q1 GDP now -1.5%
Ed Morrissey May 26, 2022 10:11 AM ET

Democrat incumbents have hoped that Joe Biden or the Federal Reserve would get inflation under control before the midterms. It might not come down to target levels until the presidential primaries, according to a CBO projection released yesterday. Continuing supply-chain crises will impact demand, but so will gas prices, as the CBO acknowledged and the Washington Post covers sparingly:

    High inflation is expected to persist for the rest of the year, saddling Americans with higher costs as price hikes continue, the Congressional Budget Office said on Wednesday.

    The nonpartisan budget office estimated that key measures of inflation will show signs of easing this year relative to last year, but will remain uncomfortably high as demand continues to outstrip supply, putting upward pressure on prices.

    From the end of 2020 to the end of 2021, the consumer price index — one measure of inflation — grew by roughly 6.7 percent, the highest level in roughly four decades. The pace of that increase will come down, according to the CBO, but only to 4.7 percent — still far higher than policymakers want. Other measures of inflation cited by the budget office project that price hikes will remain roughly twice the Federal Reserve’s intended target of 2 percent. Price increases won’t fall back to targeted levels until 2024, the CBO said.

more
https://hotair.com/ed-morrissey/2022/05/26/great-news-from-cbo-high-inflation-to-continue-into-2024-q1-gdp-now-1-5-n472102

[DefiantMassRINO]

Great, now how about the shortages and supply chain disruptions?

It's nice that some prices are falling, but that doesn't help parents desperate to find baby formula.

[GtHawk]

Great news from CBO: High inflation to continue into 2024; Q1 GDP now -1.5%
Ed Morrissey May 26, 2022 10:11 AM ET

Democrat incumbents have hoped that Joe Biden or the Federal Reserve would get inflation under control before the midterms. It might not come down to target levels until the presidential primaries, according to a CBO projection released yesterday. Continuing supply-chain crises will impact demand, but so will gas prices, as the CBO acknowledged and the Washington Post covers sparingly:

more
https://hotair.com/ed-morrissey/2022/05/26/great-news-from-cbo-high-inflation-to-continue-into-2024-q1-gdp-now-1-5-n472102

Yeah transitory inflation for the rest of this year, and the next and the next, as long as Biden's puppet masters keep pushing the destruct America button.

[DefiantMassRINO]

How can Dems quell energy inflation when they are warring against carbon-dioxide and methane?

Keep an eye on hurricane season in the Gulf of Mexico.  If its bad, there could be further energy supply disruptions.

[catfish1957]

One more quarter of negative GDP pretty much will put the hammer of any doubt of recession status.

Then add runaway Bidenflation to the equation?  With this level of unprecedented stagflation, we are seeing financial signposts not seen in the economic history of this country.  Hate to be so doom and gloom, but there is nothing going on right now that would give anyone any cause for optimism.

[catfish1957]

How can Dems quell energy inflation when they are warring against carbon-dioxide and methane?

Keep an eye on hurricane season in the Gulf of Mexico.  If its bad, there could be further energy supply disruptions.

Good point.  We historically see a $10-$15/bbl bump in crude when a Cat 4 or 5 Cane mucks up the northern gulf or knocks out refining capacity anywhere in the western Gulf coast semi-circle---> NOLA/Baton Rouge-Lake Charles-Beaumont/Port Arthur- Houston- Corpus Christi.

Today oil is about $115/bbl.  Imagine the impact at sustained $130-$140/ bbl.

[catfish1957]

Great, now how about the shortages and supply chain disruptions?

It's nice that some prices are falling, but that doesn't help parents desperate to find baby formula.

Falling prices?  What area? 

[DefiantMassRINO]

House prices in the Northeast.  They are now less unaffordable.

[LMAO]

Here comes the stagflation ...

Yup