What has been called a “Key economic indicator” from the Federal Reserve seems to suggest that the country is not “heading into a recession”, but is already entered recession territory.
The Federal Reserve Bank of Atlanta’s GDPNow forecasting tool said on Friday that “real GDP growth (seasonally adjusted annual rate) in the second quarter of 2022 is -1.0 percent on June 30, down from 0.3 percent on June 27.”
Jeff Cox, an economic analyst, wrote at CNBC on Friday saying that the 1% contraction, “coupled with the first quarter’s decline of 1.6% … would fit the technical definition of recession.”
The GDPNow model offers a more bleak point of view for the next quarter following its assessment, claiming that:
“the nowcasts of second-quarter real personal consumption expenditures growth and real gross private domestic investment growth decreased from 2.7 percent and -8.1 percent, respectively, to 1.7 percent and -13.2 percent, respectively.”
The current Federal Reserve Chairman Jerome Powell has promised Americans that the Fed would “succeed in getting inflation down to 2%.”
“The process is highly likely to involve some pain,” he said during a panel discussion at the European Central Bank, “but the worse pain would be from failing to address this high inflation and allowing it to become persistent.”
But experts have been warning of a perfect storm of economic chaos as inflation has decimated spending across the economy while Federal Reserve efforts to stave off that inflation have seen interest rates spiking sharply.
Ryan DeLarme is a disillusioned journalist navigating a labyrinth of political corruption, overreaching corporate influence, high finance, compromised media, and the planned destruction of our constitutional republic. He is also a Host and Founder at Vigilant News. His writing has been featured in American Thinker, Winter Watch, Underground Newswire, and Stillness in the Storm. He also has written scripts for television series featured on Rise.tv. Ryan enjoys gardening, creative writing, and fighting to SAVE AMERICA