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US 1st Quarter Gross Domestic Product – 1.3% (market expected 1.8%)

Chain deflator (the Gross Domestic Product price index) – 4% (3% expected).

There is no worse scenario for the Federal Reserve than stagflation, because attempting to correct one of those two weaknesses exacerbates the other. Add to this the wild card of rising oil prices, and things do not look too good for the coming year.