The U.S. economy grew slower in the first quarter than previously estimated.
Gross domestic product — the broadest measure of economic activity — grew at an 1.3% annualized rate from January through March. That’s down from the advance estimate of 1.6%. It’s notably slower than the 3.4% pace in the final three months of 2023.
The downgrade of first-quarter growth followed recent softness in readings of retail sales and equipment spending.
This is the lowest GDP since the mini-recession of Q2 when GDP declined for 2 quarters in a row.
Overall, the GDP number confirms that the US economy is slowing rapidly as US consumers – especially those in the lower half – have hit a brick wall with maxed out credit cards and wages which fail to keep up with inflation.
St. Onge Reports:
New Fed study shows why the pandemic was the greatest transfer of wealth from the working class since the 1970’s.
A main reason was housing. Quantitative easing and zero interest rates pumped house prices and allowed owners to refinance at 3% — pulling hundreds of thousands out of their house.
Meanwhile, renters had no house to pump — all they got was inflation.
In Washington, the rhetoric is always for the common man. Yet the actual policies somehow manage to destroy them.
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