U.S. GDP contracted 1.6% in Q1 amid rampant inflation; stocks head for worst 1H since 1970

The final revision of first-quarter gross domestic product confirmed a larger contraction of the U.S. economy than earlier readings has estimated, supporting the view that a recession is either in progress or looming, say economists, as U.S. inflation runs rampant and stocks head for the worst first half of a year since 1970.

Inflation

Breck Dumas for FOX Business:

The latest report released by Commerce Department on Wednesday showed that gross domestic product, the broadest measure of goods and services produced across the economy, shrank by 1.6% on an annualized basis in the three-month period from January through March. The initial report released in April showed GDP shrank by 1.4% on an annualized basis.

Economists expect some slowdown in the economy as the Federal Reserve continues to bump up interest rates to cool inflation and will be looking for indications of whether a full-fledged recession – defined by two consecutive quarters of contractions – is brewing.

The Atlanta Federal Reserve Bank’s GDPNow tracker indicated earlier this month that the economy could be headed for a second-quarter drop in GDP, after showing the economic growth stalled in the spring to a flat 0% – a steep decline from its previous estimate of 1.3% on June 1 and 0.9% on June 8.

MacDailyNews Take: On the bright side, the bad ship USS Transitory sunk so long ago that a nice coral reef is forming upon its crumpled hulk. At least the fish have a pot to piss in.

‘Tis best to get a handle on inflation, if you know how, while you still can.MacDailyNews, May 11, 2021

Earlier this year, Interactive Brokers founder Thomas Peterffy said, “Inflation is 7% — 1% or 2% [in interest rate hikes] doesn’t mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

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19 Comments

  1. The MAGA Tsunami of 2022 will be dwarfed only by the MAGA Tsunami of 2024!

      1. Biden does not belong in the same sentence with President Trump. The greatest economic first term President in HISTORY!

        Trump defied the establishment and ruling class of the Washington, FEARLESSLY implementing policies and cutting regulations on Day One that set the economy on FIRE!!

        And what did the Biden BUFFOON do? On Day One shuttering progress by canceling WORKING economic policies as the PETTY PARTISAN he is, just because they were passed by Trump. Talk about a SPITEFUL mental midget.

        As we have seen from the worst president in history with RECORD LOW APPROVAL in just 1.5 years, he implemented ZERO economic policies that lifted the economy to this day. Throwing money around we don’t have, the exact OPPOSITE purpose occurred. 40-year high inflation, RECORD gas prices, RECORD food prices, baby formula shortages and on and on and on.

        Your post, Urban Leftist Joe, is a total JOKE and American citizens are not laughing at the PRICE PAIN directly caused by grifter Biden a total traitor of the American people…

        1. Even if I were to accept the Trump positives you believe (I don’t), none of it is worth the Republic. He’s a criminal and a traitor, many times over. Just not worth it!

          1. Another Jokester with eyes wide SHUT. No one is begging you or remotely cares if you and the rest of your ILK acknowledge ALL of Trump’s unprecedented ACCOMPLISHMENTS. Understood?

            Trump is a criminal? Tell me one week the unrelenting HOUNDS of the media and Democrat Party gave Trump a break or defended him. Ok, tell me one day, one hour or one minute the hounds gave Trump a break. Answer: NOT ONCE after he rode down the golden escalator to announce his candidacy.

            $32 million wasted on Mueller investigation found NOTHING! Two PARTISAN impeachments proved NOTHING! Unless you count the stupidity of the most VINDICTIVE politician in history – PETULANT Pelosi. Half a dozen inquires by various government agencies into Jan. 6 found NOTHING! Paying prostitute landed the lawyer who brought the suit against Trump in jail also found NOTHING!

            The latest stacked the deck Jan. 6 Hill Schiff sham-show masquerading as a serious investigation found NOTHING! Unless you believe a low level 25-year old after six closed door interviews [coaching], two different lawyers, she was physically NOT THERE and heard HEARSAY second hand. Wow, hearsay, what a bombshell!!

            Common sense tells us the “Beast” limo is constructed in such a way Trump or terrorists could not even get close to the driver if they wanted to. Oh, and BTW, the Secret Service officially dumped the kid under the bus fully denying the incidence occurred. So much for feverish LYING from a select committee with one purpose – DESPERATELY convicting Trump so he can’t run in 2024. Well, Trump can take anything thrown at him and see him now still standing tall. Meanwhile the Democrats and media are SCARED and still grasping at straws.

            Now to the real crime families: the Biden’s and the Clinton’s should both be in jail for lying under oath and breaking the law multiple times. All guilty of grifting making themselves millionaires on a salary of less than $500,000 for president and less than $200,000 for a Senator of 49 years. Hunter got rich as well, no energy experience, and blew it on elaborate drugs and premium priced hookers.

            But it’s obvious you are clueless, choose TO NOT ramp up to speed on the facts and don’t care…you look the other way when your team is BREAKING BAD. Trump is all you care about, not fair and balanced. For that reason, not going to waste my time explaining it to you.

            Trump Says Hi…

    1. Are You Ready? We would ALL truly be
      An American Band after picking a
      Bad Time for this
      Mean Mistreater with his
      Loco Motions! Life would again be
      Some Kind of Wonderful.

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