U.S. Economy Shrank 1.6% To Start Year

The video discusses a 1.6% GDP decline, highlighting factors like reduced exports and government spending. It notes growing recession concerns amid high inflation. Fed Chair Jerome Powell expresses optimism about avoiding a recession but acknowledges inflation challenges. The upcoming PCE report may provide further economic insights.

What was the percentage decline in the economy, and how does it compare to the previous quarter's growth?

• 1.6% decline, following a 6.9% growth

• 2.0% decline, following a 5.5% growth

• 1.6% decline, following a 4.5% growth

• 2.5% decline, following a 6.9% growth

Which factors contributed to the recent GDP drop?

• Increased state and local government spending

• Rising stock market and federal tax cuts

• Decreases in exports, government spending, and private inventory investment

• Increased consumer spending and exports

What is the current economic concern as inflation remains high?

• Hyperinflation

• Recession

• Deflation

• Stagflation

What did Fed Chair Jerome Powell say about the possibility of a recession?

• He stated a recession has already begun.

• He did not comment on the recession.

• He is confident a recession can be avoided.

• He believes a recession is inevitable.

What is the significance of the upcoming PCE report?

• It measures employment rates.

• It provides insights into inflation and economic direction.

• It forecasts stock market trends.

• It analyzes global trade balances.