The US economy in Q1 2022 contracted 1.4%. The contraction came as a surprise to the market given the last quarter of 2021 saw the US economy grow 6.9% annualised. Despite consumer spending increasing 2.7% these missed expectations of 3.5% indicating a slowing consumption story in the US which is associated with an economy heading towards a recession. US equity markets rallied on the news under the assumption that this deteriorating number was reason for the FED to hold off raising rates to aggressively.