President Biden is set to deliver an address on the economy during a campaign event in Syracuse, New York on Thursday afternoon at 1:30 p.m. ET. His speech comes at a time when a report has shown a significant slowdown in the nation’s economy, with growth dropping to a 1.6% annual pace in the first quarter of the year due to high interest rates.
According to the Commerce Department’s report released on Thursday, the deceleration in the gross domestic product (GDP) from an impressive 3.4% growth rate in the previous quarter was largely attributed to a surge in imports and reductions in business inventories, which both had a negative impact on growth. Despite these challenges, key components of the economy remain robust, with strong contributions from both households and businesses in driving economic growth last quarter.
However, inflation rates increased to a 3.4% annual rate in the first quarter of the year, up from 1.8% in the previous quarter. This is continuing to be a concern for the Federal Reserve as they look at ways to combat price pressures that continue to persist across many sectors of
