The unexpectedly severe 1.4% annualised decline in first-quarter GDP probably won't stop the Fed from hiking interest rates by 50bp next week, since officials will chalk it up to the temporary impact of Omicron and point to the strength of underlying demand – with the growth rate of sales to private domestic purchasers accelerating to a healthy 3.7%.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.