Dismal US Q1 GDP Shrank 1.4% vs +1.1% expected

The US economy had the first contraction since early in the pandemic shrining 1.4% in the first quarter after it was expected to grow 1.1%. The decline in U.S. gross domestic product was a sharp reversal from the 6.9% annual growth rate in the fourth quarter, the Commerce Department said Thursday. The drop in GDP was fueled by a widening trade deficit. Fading government stimulus spending related to the pandemic weighed on GDP. USA Advance Q1 2022 GDP highlights The … Continue reading “Dismal US Q1 GDP Shrank 1.4% vs +1.1% expected”

Fading Impacts from US Fiscal Stimulus Should See Inflation Decline in 2022 Fitch Says

Ahead of Wednesday’s FOMC Fitch Ratings said a faster-than-expected global economic recovery is boosting prices as supply chains have struggled to keep up. However slower growth, supply adjustments in bottleneck sectors, a switch back towards services consumption, and fading impacts from US fiscal stimulus should see inflation decline in 2022.

Robust US Q1 GDP 6.4 percent Growth Catalyzed By Stimulus Payments and COVID Vaccines

The US economy grew by a robust annualized 6.4 percent in the first quarter of 2021, following a 4.3 percent expansion in the previous three-month period and slightly ahead market expectations of 6.1 percent, the advance estimate showed. The bounce back comes with stimulus payments and reopening activity catalyzed by the COVID vaccines.

US Senate Pass $1.9 trillion American Rescue Stimulus Plan

President Biden’s first major legislative initiative, the $1.9 trillion ‘American Rescue Plan’ stimulus bill passed a deeply divided Senate on Saturday in a vote 50-49. Democrats pushed through a loosely termed “pandemic aid plan” that includes an extraordinary increase in safety net spending.