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US economy shrinking at start of 2022 is 'shocking': Harvard economist
Odds of recession 50/50 over next year: Harvard economist
Harvard University professor Kenneth Rogoff, a former chief economist at the International Monetary Fund, weighs in on GDP shrinking by 1.4% on an annualized basis in the first quarter.
Harvard University professor Kenneth Rogoff, a former chief economist at the International Monetary Fund, told "Mornings with Maria" on Thursday that a contraction in the U.S. economy in the first quarter is "shocking."
The economist made the comment shortly after it was revealed that gross domestic product (GDP), the broadest measure of goods and services produced across the economy, fell at a 1.4% annualized rate in the three-month period from January through March, noting that the number is "even below the worst" he thought it might have been.
The Commerce Department revealed in its first reading of the data on Thursday that the U.S. economy cooled markedly in the first three months of the year, as snarled supply chains, record-high inflation and labor shortages weighed on growth and slowed the pandemic recovery.
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Rogoff noted that he was expecting a low number, but the U.S. economy shrinking by 1.4% is "shocking." He pointed out that negative growth coupled with inflation accelerating to a new four-decade high last month is not good for the macroeconomic picture.
The Labor Department said earlier this month that the consumer price index (CPI) – which measures a bevy of goods including gasoline, health care, groceries and rents – rose 8.5% in March from a year ago, the fastest pace since December 1981, when inflation hit 8.9%. Prices jumped 1.2% in the one-month period from February, the largest month-to-month jump since 2005.