Welcome to 2 Question Tuesday. This week’s questions were:

1. How will rising inflation change consumer spending contributions to GDP?
2. Do deficits matter?

Phil, Mike, and Larry discuss while gross domestic product grew 2% in the first quarter, the geopolitical situation risks tempering growth as inflation-weary consumers become more guarded, and how will this change the consumer spending contribution to GDP. They then talk about whether deficits matter after Fitch Ratings warned the market that the US’s credit rating faces the challenges of a widening deficit that leaves its debt burden “far above” other nations that share its AA score.

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