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Weaker Growth and Higher Inflation: Why Consensus Was Wrong

Weaker Growth and Higher Inflation: Why Consensus Was Wrong
The Federal Reserve building is seen in Washington, D.C., on Jan. 26, 2022. Joshua Roberts/Reuters
Daniel Lacalle
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Commentary

The weak gross domestic product (GDP) figure for the first quarter came with a double negative: poor consumer spending and exports plus a rise in core inflation. The U.S. administration’s enormous fiscal stimulus underscores the importance of considering the weaker-than-expected data.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”