Revised numbers on US GDP from the Bureau Of Economic Analysis indicate that the economy faces a deeper contraction than originally reported.
GDP shrank in the first quarter of 2022 by 1.6%; this is an impressive and sharp reversal from the fourth quarter of last year, which saw GDP grow by 6.9% due primarily to the continued circulation of covid stimulus dollars and consumer credit spending.
Loss of buying power in the dollar due to central bank stimulus and numerous supply chain issues indicate an extended period of price inflation well into next year.
With foreign central banks now incrementally dropping the dollar as the world reserve currency, there will be even more dollars flooding into the US from overseas.
With the GDP decline more pronounced that initially thought, will the Fed capitulate quickly and end rate hikes? It's unlikely as long as price inflation continues through most of the economy.
Reflected in the fall in GDP is a growing concern among the public that the price explosion is going to eat away at their wallets and decrease their standard of living.
When easy credit and stimulus move out of play the real economy is revealed, and in our case the true face is an ugly one.
https://www.zerohedge.com/economics/us-economy-contracted-more-initially-reported-1st-quarter
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