US first quarter growth missed expectations
While the US economy grew below expectations despite spring consumer spending in the first quarter, growth is expected to slow further as the shock of interest rates spreads higher.
According to the US Department of Commerce’s preliminary estimate, US gross domestic product rose 1.1 percent in the first quarter compared to last year.
While the economy grew 2.6 percent in the fourth quarter, economists polled by Reuters had forecast the economy would grow 2.0 percent in the first quarter.
Although the drop in the pace of economic growth reflects declining investment in stocks, the US Federal Reserve (Fed) is expected to raise the policy rate by another 25 basis points at its monetary policy meeting next week.
Since March 2022, the Federal Reserve has raised interest rates from near zero levels to the 4.75 percent to 5.00 percent range with interest rate hikes. (Reuters)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
