Bad economic vibes are having a moment – By Emily Peck (Axios) / April 29, 2022
One of the persistent storylines of the last six months or so is the clash between Americans feeling pessimistic about the economy, and the reality of the actual (booming) economy. But that tale may be about to enter a new chapter.
The big picture: We’re at a pivot point in this bad vibe era as the Federal Reserve moves to for-real put the brakes on the economy — which could cool off the era’s signature hot labor market. Next week the Fed will likely hike rates by a half-percentage point.
Between the lines: U.S. GDP figures out Thursday played into the bad mood, as the first quarter came in weaker than expected — with negative headline growth for the first time in since 2020.
- But under the hood the report wasn’t so bad. GDP arithmetic means that soaring imports — which reflect strong domestic demand — combined with falling exports shaved more than three points off the quarter’s growth, as Axios’ Neil Irwin reported.
