Although the US economy slowed more than expected in the first quarter of the year, it remained solid by historical standards. The steady decline in economic growth over the past year points to a positive outlook for lower interest rates, but the Federal Reserve clarified that it is in no rush to cut rates.
According to new data from the Commerce Department, gross domestic product (GDP) grew at an annual rate of 1.6% in the first quarter. This represents a significant drop from the 3.4% rate seen in the fourth quarter and falls below the 2.2% rate forecast 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.