Real GDP in Q2 2011 is estimated to grow at only 1.3% annualized rate, while Q1 GDP growth was significantly revised down from 1.9% to mere 0.4%. This was achieved despite the Fed’s two rounds of quantitative easing.
The recovery of the US economy seems having lost its momentum. Here is a chart from Nothern Trust’s research team.
So far, the recovery since summer 2009 has failed to pull the US economy back to its pre-peak level achieved in late 2007 (see this nice graph from calculatedrisk, click to enlarge).
John Silvia, chief economist at Wells Fargo, describes the latest growth number as the “worst of all worlds”. And he is worried that the inflation in the US is creeping up in the face of high unemployment – you know where we are heading, do you?