Economic data were mixed in the second quarter of 2022. Real GDP contracted mildly for a second consecutive quarter, but employment continued to rise. Firms added an average of 375,000 jobs per month and the unemployment rate remained near a half-century low. Surging energy and food prices—due in part to Russia’s invasion of Ukraine—pushed up headline inflation to new highs, though core inflation remained elevated as well. At the same time, housing data suggested the start of a market correction as high house prices and rising interest rates constrained demand for new and existing homes. As in the first quarter, the ... (full story)