The Bureau of Economic Analysis on Thursday reported that the U.S. gross domestic product grew by an annualized rate of 1.6% in the first quarter of this year.
That’s slower than forecasted by many economists, and down from the fourth quarter of last year, when the GDP grew well over 3%. That rate, in turn, was slower than the previous increase of nearly 5% in the third quarter of 2023.
What led to the decrease this past quarter? The government spent less, the country exported less, and consumers bought less in the past quarter, according to the report. The United States also imported more goods from other countries compared to last year’s fourth quarter.
What does this mean? The U.S. economy is slowing down, according to the report. The Federal Reserve has held interest rates steady around 5.25-5.50% for several months after a campaign of steady increases. The central bank will not lower its interest rates until it sees evidence that inflation is sustainably decreasing, Federal Reserve Chairman Jerome Powell said in a statement last month.
This story originally appeared in WORLD. © 2024, reprinted with permission. All rights reserved.
What it really means is the massive spending by Biden with zero increase in products and services to OCONUS customers means more $ chasing the same goods and services: Inflation, followed by less demand (many are broke living paycheck to paycheck and gov handout to handout . Dems: Printing money for handouts does NOT work! Handouts disincentivize working!