CNBC’s Rick Santelli reacts to the GDP contraction: ‘Disgusting’ 2022-04-28 12:44:25

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CNBC’s Rick Santelli said Thursday that gross domestic product came in at “minus 1.4” in the first quarter of 2022.

While appearing on “Squawk Box,” Santelli gave a string of first quarter numbers. Gross Domestic Product measures the market value of all goods and services produced in a three-month period. The economy contracted unexpectedly by 1.4% On an annual basis in the first three months of 2022.

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“We haven’t had a minus sign since that bad second quarter, which is related to COVID, in 2020,” Santelli said. “Price index, peg, 8%, 8%. That’s incredible. To find a number above 8%, you have to go back to 1981.”

Santelli said there were “serious” surprises in the numbers. Because of the way the Commerce Department calculates GDP, the decline in growth and the subsequent rebound can sometimes be overstated.

A view of the Commerce Department building before an expected report on new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts

A view of the Commerce Department building before an expected report on new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts

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Some economists expected the economy to grow 1.1% in the first quarter. This quarter’s number was the worst since spring 2020, when the United States was in the worst of the coronavirus pandemic.

The economic downturn can be attributed to record-high inflation, supply chain shortages and labor shortages. Because of the way the Commerce Department calculates GDP, the decline in growth and the subsequent rebound can sometimes be overstated.

FILE PHOTO: A wanted-for-help sign appears at a fast food restaurant in Solana Beach, California, US, November 9, 2021. REUTERS/Mike Blake/File Photo

FILE PHOTO: A wanted-for-help sign appears at a fast food restaurant in Solana Beach, California, US, November 9, 2021. REUTERS/Mike Blake/File Photo

Harvard University professor Kenneth Rogoff said Thursday that the numbers are “shocking”.

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Chris Zaccarelli, chief investment officer at CIA, said the numbers were a “wake-up call that the economy isn’t as strong as we all thought.”

U.S. President Joe Biden, along with Environmental Protection Agency (EPA) Administrator Michael Reagan and his top aide Steve Ricchetti, hold an infrastructure meeting with business and labor leaders at the White House in Washington, U.S. on July 22, 2021.

U.S. President Joe Biden, along with Environmental Protection Agency (EPA) Administrator Michael Reagan and his top aide Steve Ricchetti, hold an infrastructure meeting with business and labor leaders at the White House in Washington, U.S. on July 22, 2021.

He continued, “It is possible that the GDP will be revised higher next month, because this is just the first release and there will be two revisions, but it is a warning sign.”

President Biden responded to the news by saying that “the estimate was affected by technical factors.”

“The United States faces the challenges of COVID-19 around the world, Putin’s unprovoked invasion of Ukraine, and global inflation from a position of strength,” the president’s statement said.

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