In the first quarter of the year, the US economy experienced a greater than expected slowdown, although it remained solid compared to historical standards. Despite this decline in economic growth over the past year, there is a positive outlook for lower interest rates. However, the Federal Reserve has clarified that they are not in a rush to cut rates.
According to the Commerce Department, gross domestic product (GDP), which measures all services and goods produced in the economy, grew at an annualized rate of 1.6% in the first quarter. This is a significant decrease from the 3.4% rate seen in the fourth quarter and falls below the 2.2% rate projected by economists in a FactSet poll. These figures are adjusted for seasonal fluctuations and inflation.
The story is still developing and updates will be provided as more information becomes available.