QQQ - Stagflation On Tap: Q1 2024 GDP Disappoints As Inflation Continues

2024-04-25 16:23:53 ET

Summary

• First quarter GDP growth rate disappoints at 1.6%, below consensus estimates of 2.5%.
• Core PCE exceeds market expectations at 3.7%, above the Federal Reserve's target of 2%.
• The possibility of stagflation arises as economic stagnation and inflation are observed.
• An array of "gray swans" enhance downside market risk.

NEW YORK (April 25) - Gross Domestic Product, or GDP, for the First Quarter of 2024 ("2024Q1") printed this morning at a disappointing 1.6% rate of annual growth. Consensus estimates had put the figure at 2.5%. The print was 40 bps below the lowest point of our range of 2.25% (+/-25 bps)...

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