In a surprising turn for the world’s largest economy, the United States faced a significant slowdown in the first quarter of the year. As economists braced for a robust expansion, the reality unveiled a stark contrast, raising concerns about the impact of Federal Reserve policies and inflationary pressures.
Key Points:
- US GDP grows at an annualized rate of 1.6% in Q1, falling short of the expected 2.5%.
- Consumer spending decelerates, contributing to the overall slowdown in economic growth.
- Federal Reserve’s interest rate hikes are cited as a factor pressuring consumers and the economy.
- Inflation remains high, with the core Personal Consumption Expenditures index rising to 3.7% in Q1.
- Stock futures drop and bond yields rise following the GDP release, signaling market reactions to the news.
- Despite a healthy labor market, concerns persist about the Fed’s approach to monetary policy amid ongoing inflationary pressures.
Sources:
JUST IN – U.S. economy slowed significantly in the first quarter.
— Disclose.tv (@disclosetv) April 25, 2024
GDP 1.6%, EXP 2.5%.
And back to 3 rate cuts
— zerohedge (@zerohedge) April 25, 2024
Views:
51