{"id":2229959,"date":"2024-04-25T11:19:02","date_gmt":"2024-04-25T15:19:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-economy-sees-low-growth-high-inflation-in-q1\/"},"modified":"2024-04-25T11:23:27","modified_gmt":"2024-04-25T15:23:27","slug":"us-economy-sees-low-growth-high-inflation-in-q1","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-economy-sees-low-growth-high-inflation-in-q1\/","title":{"rendered":"In Q1, US Economy Records Low Growth and High Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-economy-sees-low-growth-high-inflation-in-q1%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2229959&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>In the first quarter, the U.S. economy saw\u200c growth below the Federal\u200b Reserve&#8217;s projections, coupled\u2064 with \u200dhigh inflation, posing a dilemma. Despite below-trend growth to alleviate inflation, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/brent-crude-oil-hits-120-barrel\/\" title=\"Brent Crude Oil Hits 0\/Barrel\">prices remained elevated<\/a>. Market reactions favored inflation concerns over economic cooling signs anticipated by \u2064the Fed. Economists suggest that the \u200ceconomy&#8217;s weakness might \u2064be overstated,\u200b but persistent inflation \u200dchallenges the Fed&#8217;s 2% target.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/historic-significance-of-georgia-senate-contests\/\" title=\"Historic Significance of Georgia Senate Contests\">economic growth<\/a> in the first quarter fell below the Federal Reserve&#8217;s estimates of the economy&#8217;s long-run potential for the first time in nearly two years, but the signs of slowing were accompanied with fast inflation that, if sustained, would pose a particular dilemma for the central bank.<\/p>\n<p>Fed officials through much of their battle with a pandemic-driven breakout of inflation said they thought it would take a period of below-trend growth to really bring price pressures into line, and the 1.<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/survey-most-school-leaders-rate-parents-poor-or-fair-at-teaching-children-about-race-sex-lgbtq-climate-change\/\" title=\"Survey: Most School Leaders Rate Parents \u2018Poor\u2019 or \u2018Fair\u2019 at Teaching Children About Race, Sex, LGBTQ, Climate Change\">6 percent rate<\/a> of expansion registered in the first quarter met that mark after a period above the central bank&#8217;s median 1.8 percent estimate of noninflationary potential.<\/p>\n<p>But prices have remained sticky, with the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/benchmark-inflation-measure-hits-highest-level-in-30-years\/\" title=\"Benchmark Inflation Measure Hits Highest Level In 30 Years\">personal consumption expenditures price index<\/a> over the first quarter rising at a 3.4 percent annual rate versus the Fed&#8217;s 2 percent target.<\/p>\n<p>Investors and analysts at first blush put more weight on the high inflation figure than on the signs the economy may finally be cooling as the Fed has expected.<\/p>\n<p>Data from the CME Group&#8217;s FedWatch tool showed the probability of an initial Fed rate cut slipping across the board, with a June cut now given less than 10 percent odds, bets on a September cut slipping to about 58 percent, and a second cut in December given less than even odds.\t<\/p>\n<p>There are reasons to think the 1.6 percent first-quarter growth rate overstates any weakness in the economy, said Nationwide Financial Market economist Oren Klachkin, with sizeable drags from imports and inventories unlikely to persist through the year.<\/p>\n<p>But &#8220;inflation isn\u2019t in a place where the Fed can be confident the 2 percent goal is within reach,&#8221; Klachkin said. &#8220;A higher-for- longer interest rate environment will likely prevail.&#8221;<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Q1, U.S. economic growth dipped below the Federal Reserve&#8217;s long-term potential for the first time in almost two years. This slowdown coincided with rapid inflation, presenting a unique challenge for the central bank. Fed officials grappled with the dual concerns of sluggish growth and escalating prices during this period<\/p>\n","protected":false},"author":66,"featured_media":2229960,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/freebeacon.com\/wp-content\/uploads\/2024\/03\/biden-illegal.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2229959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/freebeacon.com\/wp-content\/uploads\/2024\/03\/biden-illegal.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2229959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2229959"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2229959\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2229960"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2229959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2229959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2229959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}