Larry David’s favorite tagline also happens to be an apt description of the economy right now: It’s pretty, pretty good.

US gross domestic product (GDP), the broadest measure of economic activity, grew at a 2.9% annualized pace in Q4 2022, which topped expectations. And it’s rock-solid proof that the recession we’ve been warned about for months ain’t here yet.

Not only has the US economy regained all the lost output from the Covid recession, but it’s also returned to its growth trajectory from before the pandemic. Real GDP per capita, which factors in inflation, has reached its highest level ever.

Is this a sign of a “soft landing”? Q4’s strong GDP numbers are raising hopes that the Fed could actually pull off the tricky “soft landing”—where it knocks down inflation through interest rate hikes without sending economic growth into reverse. The resilient labor market is cooperating: Despite all the headlines about layoffs, jobless claims fell last week to their lowest point since April 2022.

But don’t write off a recession just yet

Economists combing through the GDP report found a few warning signs that indicate a recession remains a clear and present danger. Here are a few:

• Consumers are pulling back. Personal consumption, which represents about 70% of all US output, came in below forecasts, signaling Americans aren’t reaching for their wallets like they had been earlier in the pandemic. Growth in business inventories also suggest a more cautious consumer.
• The housing market got pummeled. The sector shrank at a 27% annualized pace last quarter as higher mortgage rates put homebuying and construction on ice.
• Companies are slowing down their spending. In Q3, business investment grew 6.2%; in Q4, just 0.7%.

Bottom line: The US economy is in a fluid state right now, being tugged in different directions by large, complex forces. And even the people who study it 50+ hours a week only speak in probabilities. When execs and economists say the outlook is “uncertain”—they mean it.—NF

More companies announce layoffs: And it’s not just the high-flying tech firms doing it. The toymaker Hasbro cut about 15% of its global workforce after its holiday-season sales dropped 17% from the prior year. And IBM, Dow, SAP, and 3M all announced significant layoffs this week, citing the uncertain economic environment we just discussed.

Ex-Memphis police officers charged with murder. Five former officers of the Memphis Police Department were charged with second-degree murder and other crimes over the killing of Tyre Nichols, a Black man who died three days after a violent traffic stop. Shelby County DA Steve Mulroy said that a video of the traffic stop shows the five ex-police officers, all of whom are Black, severely beating Nichols, and asserted that they were all responsible for his death. That video will be released to the public this evening.

14 reasons why AI should write online content. BuzzFeed CEO Jonah Peretti told employees yesterday that the company will work with OpenAI (ChatGPT’s creator) to help pump out “AI inspired content,” such as its patented quizzes. That memo sent BuzzFeed’s battered stock up 120%...all the way to above $2/share. While Peretti and investors are jazzed about incorporating AI into content, BuzzFeed will have to tread carefully: The tech site CNET was recently forced to apologize after people pointed out that its AI-written articles made factual errors and plagiarized humans’ work.

If robots rise up against humanity, it might be because we’re making them take a bunch of tests. ChatGPT, the much-hyped AI text generator from OpenAI, passed medical, business, and law exams this month and scored higher than many human students.

ChatGPT recently scored above a passing grade on…

• The three-part US Medical Licensing Exam
• A Wharton Business School exam—the final test of the MBA program’s Operations Management course
• Four University of Minnesota Law School exams in Constitutional Law, Employee Benefits, Taxation, and Torts (not the dessert)

These tests contained a mix of short-answer, essay, and multiple choice questions—and ChatGPT received passing, but not gold-star, grades in all of them. Examiners noted that ChatGPT was much better at writing than math, which…same.

Big picture: SmarterChild 2.0’s success has educators debating AI’s role in the classroom and how to best assess student learning in the new ChatGPT era. While some want to keep AI tools out of class by, say, requiring students to write out work by hand, others argue we should embrace the new tech as a support tool, like a tutor or calculator.—JW

“If you sue me, I’m not going to let you see Billy Joel live.”

That’s essentially how James Dolan, the CEO of Madison Square Garden Entertainment and billionaire owner of the Knicks, defended the company’s controversial use of facial recognition at its venues.

In a rare TV interview yesterday, Dolan claimed that “the Garden has to defend itself,” and threatened to halt alcohol sales at Rangers games to generate negative publicity for investigators looking into his company’s use of the tech. “I don’t need the liquor,” he said.

What’s got Dolan so riled up? Remember when an attorney was escorted out of Radio City Music Hall while attempting to see the Rockettes with her daughter? It’s about that—and broader backlash over MSG’s alleged practice of using facial recognition tech to identify and ban lawyers employed at firms involved in MSG-related cases from entering its venues.

New York has launched an investigation into MSG’s use of facial recognition tech, which has impacted 90 law firms, according to NY Attorney General Letitia James.

Zoom out: Dolan might want to check his fortifications—they’re a bit porous. To evade the scanners, one lawyer donned a disguise to attend a Jerry Seinfeld show in December.—MK

Stat: An asteroid made one of the closest approaches to Earth on record last night, skimming our planet just 2,200 miles above the Pacific Ocean near Chile (that’s closer than some satellites). The asteroid, named 2023 BU, is roughly the size of a U-Haul truck and posed no threat, according to NASA. “It’s going to zoom past Earth, say hello, and move on,” a NASA engineer said. Sounds like our ex.

Quote: “The word ‘mummy’ is not incorrect, but it is dehumanizing.”

Some museums want you to remember that mummies were once—a really long time ago—people, too. A trio of British museum organizations said they will avoid using the word “mummy” whenever possible, and swap it out with “mummified remains of” or “mummified person.” Meanwhile, the AP recommended a controversial language update of its own yesterday.

Watch: Why esports are flailing even as gaming explodes. (Morning Brew)

The feeling of getting a 5/5 on the Brew’s Weekly News Quiz has been compared to remembering you have a new episode of Real Housewives to watch.

It’s that satisfying. Ace the quiz.

Movie recs: You could take inspo from the Oscar nominee list, or…you could check out the best movies of 2022 on Letterboxd.

Time capsule: This video came out a year ago this week.

Fully charged: HR pros know how hard it is to keep employees energized. HR Brew’s latest guide helps you kick workplace burnout. Check it out.

Prioritize your mental health: Taking care of yourself matters, and BetterHelp can connect you to a licensed therapist who fits your needs within 48 hours. Get 25% off your first month (up to $70 in savings).*

^{*This is sponsored advertising content.}

Picdoku: Zany Minor League mascots star in today’s picdoku. Play it here.

Friday puzzle

There are 10 elements on the periodic table whose names are five letters or fewer. How many can you list?

Find yourself working overtime because you’re spending your day in pointless meetings? Our $29 toolkit teaches you techniques to optimize your work schedule, and provides customizable templates to take actionable steps. Shop now.

Did you know there have already been four major AI-related lawsuits since September 2022? Don’t miss out on another tech story. Subscribe to Emerging Tech Brew.