Our nation’s economy shrank for the first time since the pandemic recession struck two years ago. New data indicates that in Q1, GDP was down 1.4% on an annualized basis. “Today’s shock drop in GDP is a wake-up call that the economy isn’t as strong as we all thought,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, told Fox. “It’s possible that GDP gets revised higher next month, as this is just the first release and there will be two revisions, but it is a warning sign.” In other news, one business owner in Utah said he’s worried about the dollar losing purchasing power. Not only has he turned to gold, but he’s also accepting it as payment in several of his businesses.
Fox Business Insider/Megan Henney
US economy shrank 1.4% at beginning of 2022, marking worst quarter in 2 years
The U.S. economy cooled markedly in the first three months of the year, as snarled supply chains, record-high inflation and labor shortages weighed on growth and slowed the pandemic recovery.
Gross domestic product, the broadest measure of goods and services produced across the economy, shrank by 1.4% on an annualized basis in the three-month period from January through March, the Commerce Department said in its first reading of the data on Thursday.
Refinitiv economists expected the report to show the economy had expanded by 1.1%. It marked the worst performance since the spring of 2020, when the U.S. economy was still deep in the throes of the COVID-induced recession.
Read the full story, here.
Reuters via Cyprus Mail
With inflation, gold notes and cards find their way into America’s wallet
With inflation running at its highest levels in four decades, Utah business owner Steve Allred is concerned about the declining purchasing power of the US dollar.
To help protect against the possibility that it will get worse, Allred, like many investors, has bought gold. He has also begun to accept some forms of the precious metal as payment in the three hardware stores that he owns with his brother.
Allred is among a group of Americans that are increasingly turning to gold as an alternative currency as unprecedented government spending and Federal Reserve easing threatens to further erode the value of the greenback.
You can read the full story, here.
Axios/Javier E. David
Why the 2022 market could end like 1982
Relentless inflation, geopolitical turmoil and slowing growth have drawn comparisons to the “stagflation” of the 1970s. Yet the more apt comparison might be the year 1982.
Like today, 1982 was characterized by “tense” Russia relations, surging commodity costs, and contentious midterm elections. Then, as now, soaring prices had consumers in a glum mood and the Fed on a tightening path.
Continue reading, here.