Consumer spending declined by 0.2% in January, suggesting potential weaknesses in the economy. Investment Company Institute chief economist Shelly Antoniewicz joins Market Domination hosts Julie Hyman and Josh Lipton to discuss her outlook for economic growth and inflation.
Antoniewicz references the Atlanta Federal Reserve's forecast of -1.5% GDP growth for the first quarter, down from 2.3% a couple weeks ago. To reverse this projection, she indicates the economy will need "a lot more consumption growth," yet the Personal Consumption Expenditures (PCE) data revealed a deceleration in consumer spending.
"The signs of the consumer, which has been holding up the fabulous and wonderful GDP growth that we've experienced ... in the US economy, that could be starting to falter," she tells Yahoo Finance.
Regarding Federal Reserve monetary policy implications, Antoniewicz states, "There's almost near universal agreement" that the central bank will implement 25-basis-point cuts three times this year: one in June, one in September, and one in December.
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However, she cautions that ongoing labor market uncertainty could alter these projections.
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This post was written by Angel Smith