Q1 GDP miss: 2.0% vs 2.2% consensus. Sequential deceleration from 0.5% prior quarter signals demand weakness.

PCE inflation sticky at 3.5% YoY, in-line but elevated vs 2.8% prior. Core PCE 3.2% YoY matches estimates, up from 3.0%. Disinflation stalling.

Implication: Stagflation risk rising. Growth slowing while inflation remains above Fed's 2% target. Reduces probability of near-term rate cuts. Duration assets face headwinds. Real rates staying restrictive longer.