The U.S. economy weakened in the first quarter, continuing its slowdown trend.
According to the Bureau of Economic Analysis (BEA), the first-quarter GDP growth rate was just 1.1 percent, down from 2.6 percent in the fourth quarter. This also came in below economists’ expectations of two percent.
But the real surprise was the acceleration in inflation:
- GDP Price Index: +4 percent
- PCE Price Index: +4.2 percent
- Core PCE Price Index: +4.9 percent
Will tomorrow’s March PCE and core PCE come in higher than expected?
Now, will this force the Federal Reserve to keep raising interest rates beyond the May Federal Open Market Committee (FOMC) policy meeting?
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