MickyD & Atlanta Fed Signal Recession Here

Two ominous signs USA’s already in recession is McDonald’s Dollar Drinks drying up as inflation soars & key Fed GDP tracker turned negative, forecasting a 1% decline in growth for Q2 after shrinking 1.6% in Q1.

First, the really bad news. Chicago-based McDonald’s concedes some of its franchisees is ignoring its advice and, as the WSJ put it, “axing” the chain’s US deal offering soda & other cold beverages of any size for a buck “as restaurant owners try to manage a record spate of inflation.

Meanwhile, on the broader economic woe front, Fox Business reports “The GDP gauge, a widely watched measurement from the Atlanta Federal Reserve Bank, indicated Thursday that real gross domestic product shrank by [at least] 1.0% in the second quarter from April through June.” Although the final report won’t be released for another month, if accurate and considering the first quarter’s GDP lost ground, too, it could mean WE ARE ALREADY IN A RECESSION with the FED poised to raise interest rates and (indirectly) the cost of Big Macs as well as gasoline prices even higher.

Davd Soul