US Economic Update – April 2022

Even with GDP falling in Q1, the Fed is set to move faster.

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Key highlights:

  • GDP fell in Q1 but the composition of growth was more positive, with consumption solid and business investment strong.
  • Growth is likely to rebound in Q2 but then slow as tighter policy settings, and other headwinds, constrain activity.
  • We expect the Fed to raise rates by 50bps at its May meeting and to announce the start of QT. By the end of 2022, we expect the target range of the fed funds rate to be 2.25 to 2.50%, with it set to peak at 2.50-2.75% in early 2023.

Find out more in NAB’s US Economic update (April 2022)