The PCE deflator – the measure of inflation most closely tracked by the Federal Reserve, was 3.7% and above expectations of 3.4%.
Joe Biden has just fallen in the economic gauntlet – and he can’t get up. The economy is a slow motion train wreck just ahead of the 2024 elections.
The Reality:CNBC: "GDP...a disappointment--1.6%. We were looking for a number almost a full percentage point higher." pic.twitter.com/Y6nqQ4SeGn
— MAGA War Room (@MAGAIncWarRoom) April 25, 2024
And a good summary:The market after the last GDP report pic.twitter.com/PV7RRUDt3t
— Not Jerome Powell (@alifarhat79) April 25, 2024
And the quick Zerohedge analysis:For those who do not understand what just happened:
— The Kobeissi Letter (@KobeissiLetter) April 25, 2024
First, Q1 2024 GDP growth slowed to just 1.6% which is less than HALF of the 3.4% Q4 2023 number.
This reading is roughly 50% BELOW Goldman Sach's expectations.
But it gets even worse.
At the same time, the US Core PCE Price… pic.twitter.com/5Rct3i9TGh
And most important to future economic growth – interest rate reduction expectations have vanished:Stagflation Shock: GDP Stuns With Lowest Print In 2 Years, Below Lowest Estimates, As PCE Comes In Red Hot https://t.co/srm7bNoxs9
— zerohedge (@zerohedge) April 25, 2024
The lack of expected cuts to short term interest rates amidst rising inflation and the recent positive trend in inflation portend higher long term rates as well – we can expect 8% mortgages in the near future. Given these developments, a recession is likely to arrive before the election, helping to ensure that Joe Biden will lose 2024.'Stagflationary' GDP Data Sparks Market Turmoil, Rate-Cut Hopes Crushed https://t.co/GvxbC8YSA8
— zerohedge (@zerohedge) April 25, 2024
Comments