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Fortune

Christiaan Hetzner

Economic bellwether FedEx blames poor Q1 on darkening outlook for manufacturers

FedEx US Federal Reserve Raj Subramaniam Bernstein

Raj Subramaniam, chief executive officer of FedEx, during the Business 20 (B-20) Summit in New Delhi last year. (Credit: Prakash Singh—Bloomberg via Getty Images)

The heated debate over whether the Federal Reserve took too long before responding to signs of a softening economy just saw more fuel added to the fire.

On Thursday, FedEx shocked investors by missing quarterly expectations across the board and issuing more cautious guidance, blaming a pullback by manufacturing customers no longer willing to pay top dollar for priority shipping.

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