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The US economy shrank a bit but don't panic

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Thu, Apr 28, 2022 09:10 PM

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Plus, Biden requests $33 billion in Ukraine aid. The US economy shrank 1.4 percent in the first quar

Plus, Biden requests $33 billion in Ukraine aid. The US economy shrank 1.4 percent in the first quarter of 2022; Biden asks Congress for $33 billion in aid for Ukraine. Tonight's Sentences was written by Jariel Arvin.   TOP NEWS The US economy shrank but things are (mostly) solid Spencer Platt/Getty Images - US [gross domestic product]( (GDP) shrank at an annualized rate of 1.4 percent in the first quarter of 2022, the Commerce Department said Thursday. It was the worst quarter since the drop caused by the beginning of the pandemic. [[CNBC / Jeff Cox](] - The decline was driven by two technical factors. The US trade deficit grew to a record high (the country is importing more goods than it exports), slashing 3.2 percent of growth. And retailers purchased less inventory for factories and warehouses, taking off another 0.84 percent. [[Politico / Kate Davidson](] - However, the report wasn’t just bad news: the US unemployment rate fell to near a 50-year low. Consumer and business spending grew 3.7 percent, adjusted for inflation — a metric economists say is a better indicator of the economy’s overall health than GDP. [[Associated Press / Christopher Rugaber](] - Still, inflation has soared to 8.5 percent over the past year. The Federal Reserve began hiking interest rates in response, a move that some worry will prompt a recession. [[Washington Post / Abha Bhattarai]]( - While GDP growth fell below expectations, most economists say it isn’t time to panic yet, arguing we’re not in the beginning of a recession. [[Yahoo Finance / Brian Sozzi](] [Learn more about RevenueStripe...]( President Biden seeks $33 billion for Ukraine aid - Thursday, President Joe Biden asked Congress for $33 billion in supplemental funding to help Ukraine fend off Russia’s invasion over the next five months. [[ABC News / Justin Gomez and Armando Garcia](] - The funding request — more than double the amount approved in March — includes more than $20 billion in military aid, $8.5 billion in economic assistance, and $3 billion in humanitarian assistance. [[CNN / Kate Sullivan, Arlette Saenz, Betsy Klein, and Kevin Liptak](] - As weapons flow from the West to Ukraine, Russia threatened the US and its allies on Thursday with a significant military response if any attacks occur on its territory. [[Reuters / Guy Faulconbridge](] - Although Biden asked Congress to act quickly, the House is leaving for a recess. A looming fight over Democrats’ plans to tie Covid-19 funding to Ukraine aid could further slow the process. [[National Public Radio](]   MISCELLANEOUS Thursday, the FDA announced a plan to ban menthol cigarettes. If approved, the rule will take at least a year to take effect. [[New York Times / Christina Jewett](] - Hundreds of Sri Lankan workers are pushing their president to resign as the country faces a worsening economic crisis. [[Al Jazeera](] - Next month, Rudy Giuliani is expected to appear before the House committee investigating the January 6 insurrection. [[CNN / Paula Reid, Annie Grayer, Ryan Nobles, and Zachary Cohen](] - Taiwan is struggling with its biggest Covid-19 outbreak of the pandemic, reporting 11,000 cases on Thursday. [[Forbes / Russell Flannery](]   Support our journalism Reader contributions help keep newsletters like Sentences free for all. Support our work with a one-time gift today. [Give](   VERBATIM “We’ve got a resilient economy, but signs of weakness are starting to show.” [[Diane Swonk, chief economist at Grant Thornton, in the Washington Post](]   LISTEN TO THIS Who decides how to conserve nature? Vox's Benji Jones talks with Indigenous leader Kimaren ole Riamit about the role of Indigenous peoples in the conservation movement. [Listen now ▶](   Read more from Vox Ron DeSantis is following a trail blazed by a Hungarian authoritarian]( [Why it’s now illegal for some voters with disabilities to cast a ballot]( [Time is running out for Biden’s EPA to act on climate]( [An expert on why wars start, and how to prevent them]( [Revisiting the Christian fantasy novels that shaped decades of conservative hysteria]( [Learn more about RevenueStripe...](   [Facebook]( [Twitter]( [YouTube]( This email was sent to {EMAIL}. Manage your [email preferences]( or [unsubscribe](param=sentences). If you value Vox’s unique explanatory journalism, support our work with a one-time or recurring [contribution](. View our [Privacy Notice]( and our [Terms of Service](. Vox Media, 1201 Connecticut Ave. NW, Floor 12, Washington, DC 20036. Copyright © 2022. All rights reserved.

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