USA GDP and Interest Rate

The US Bureau of Economic Analysis will released the GDP Q1 next thursday and they expect a slower move in the economy as per 2% down from 2.6%.

The expected number may come less than 2% due to the big decrease in the consumption, one of the main variable of the GDP.

On may 4, the chance that the FED will increase IR by 25 bps is up to 70%. This may cause a lower GDP for Q2 and sooner or later the US Economy will go into recession.

johnny
johnny
Ph.D in Economics
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