U.S. GDP falls 1.4%: ‘I think Powell can navigate a soft landing’
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Wajeeh Khan
on
Apr 28, 2022
Mad Money host Jim Cramer says Fed Chair can still navigate a soft landing.
Pantheon Macroeconomics’ Ian Shepherdson doesn’t see a recession ahead.
Gross Domestic Product fell at an annualised pace of 1.4% in the first quarter of 2022, reported the U.S. Commerce Department on Thursday. This compared to about a 1.0% growth expected.
Jim Cramer: soft landing is possible
Traditionally, recession is defined as two successive quarters of GDP decline. Still, influential investor Jim Cramer is convinced the U.S. central bank can manage a soft landing. On CNBC’s “Squawk on the Street”, he said:
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Everybody thinks that inflation is too hot and very few people think that Jerome Powell can navigate a soft landing. But I think he can. But the Fed can’t relax. The companies this morning and last night all except two delivered numbers I really like.
A day earlier, Leuthold Group’s Jim Paulsen also said the U.S. inflation has likely peaked and we’ll see a soft landing ahead.
Ian Shepherdson: we’re not heading into recession
Despite inflationary pressures, consumer spending remained resilient, rising 2.7% in the first quarter. Who also agrees that recession is not on the cards is Pantheon Macroeconomics’ Ian Shepherdson.
This is noise; not a signal. The economy is not falling into recession. Net trade has been hammered by a surge in imports. This can’t persist much longer. Imports will drop outright and net trade will boost GDP growth in Q2 and/or Q3.
The benchmark S&P 500 index is up 1.5% on Thursday; still down more than 10% for the year.
eToro
10/10
68% of retail CFD accounts lose money
Visit site
Economic
Indices
Industries
Macroeconomic
North America
Stocks & Shares
USA
World
