The economy shrinks. 
Welcome to the Know the Difference Minute for Thursday, April 28th. 
Gross Domestic Product is the measure of goods and services over a 3-month period. 1st quarter GDP expectations weren’t high, but today’s 1.4% drop took some by surprise. Remember, the economy was coming off its best performance since ’84, up 6.9%. 
COVID played a large role. So did the Russian war. Inflation is still flashing red. Consumer spending was up but prices were up more. There also is a growing trade deficit. In Q1, imports increased by nearly 20% but exports fell 6%. 
Current market pricing indicates the equivalent of 10 quarter-point rate hikes by the end of the year. That would take the Fed’s benchmark interest rate to about 2.75%. 
Economists still largely expect the US to avoid an outright recession, but risks are rising for a less-than-soft landing. 
I’m Dave Spano from Annex Wealth Management.  That is your Know the Difference Minute.