Where are we headed?

Source: Wells Fargo Investment Institute, as of March 31, 2022. Subject to change. GDP = gross domestic product. Fed = Federal Reserve

Key Takeaways

  • The U.S. economy, propelled earlier by vaccine deployment, ample household and corporate cash, low interest rates, and, until recently, massive government support, now faces headwinds from soaring commodity prices, higher wage-price inflation and interest rates, labor shortages, and supply-chain disruptions.
  • Monetary stimulus is following an earlier pullback in fiscal stimulus in reversing the strong tailwinds to economic growth. The job market should continue improving due to strong growth and an easing of labor shortages.