With the new Q1 reports for GDP released, many economists are aware of whats to come for the US economy. With a GDP growth of 1.1% in Q1, the Feds attempt to slow economic growth and decrease inflation by raising interest rates is finally being felt. The original prediction for Q1 GDP was 1.9%, so the Feds actions are working much quicker than expected.
The goal of raising the interest rates was to create a soft landing for the American economy, but some economists are skeptical of this actually working. They predict that in the second half of 2023, there will be a mild recession for the economy. There was a business group included in the article that "puts the probability of a U.S. recession over the next year at 99%." This is a worrying fact, as the whole point of the soft landing was to avoid the risk of a recession.
The only reason we haven't reached lower GDP growth rates is because there is a strong consumer in America right now. All economic indications are pointing towards a struggling economy; imports are greater that exports, inflation is high, and interest rates are being risen. Soon, the strong consumer will pull back on their spending and will push the economy ever so closer to a recession.
https://www.cbsnews.com/news/u-s-economy-gdp-first-quarter-2023/
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