US Economic Growth Slows Sharply in First Quarter As Interest Rates Rise
The U.S. economy expanded by 1.1 percent in the first quarter, down from 2.6 percent in the fourth quarter, according to the Bureau of Economic Analysis (BEA). This also came in below economists’ expectations of 2 percent.
This was the slowest quarterly growth since the second quarter of 2022.
The Federal Reserve’s higher interest rates have been traveling throughout the U.S. economy over the past year, with the central bank increasing the benchmark fed funds rate by 475 basis points to its highest level since late 2007. The target range has risen to 4.75 and 5.00 percent.
Investors expect the Federal Open Market Committee (FOMC) to raise rates by another 25 basis points at next month’s policy meeting, according to the CME FedWatch Tool….