Summers, Others Cite Growing Chance of Recession

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The Street

By Dan Weil GDP shrank an annualized 1.6% in the first quarter, and some experts anticipate another drop in the second quarter. Concern is growing that the Federal Reserve’s interest-rate increases will throw the economy into a recession. GDP shrank an annualized 1.6% in the first quarter. And the government reported that personal consumption expenditures, adjusted for inflation, fell for the first time in May, by 0.5% from a month earlier. Consumer spending accounts for more than two-thirds of GDP, so that’s a problem. Some economists anticipate the economy contracted in the second quarter as…

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