America’s Frustrating Search for a Soft Economic Landing
The first-quarter GDP report supports the view that the US economy has not landed. While some economists are concerned about stagflation, the real worry is that taming price pressures may require a mild downturn, given strong consumer spending and inadequately restrictive monetary policy.
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WASHINGTON, DC – In the first quarter of 2024, GDP in the United States grew at an annual rate of 1.6% – nearly a percentage point slower than expected. At the same time, core inflation remained higher than anticipated, with consumer prices (excluding energy and food) increasing at an annual rate of 3.7%, up from 2% in the fourth quarter of 2023.