The US economy experienced a greater than expected slowdown in the first quarter of the year, although it remained solid compared to historical standards. Despite this, the steady decline in economic growth over the past year indicates 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 recent data from 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.
As economic growth continues to slow down, experts predict that interest rates may eventually be lowered to stimulate growth and investment. However, it remains to be seen whether or not this will happen soon enough to prevent further slowdowns or recessions.
The story is still developing and updates will be provided as more information becomes available.