The date April 25 might not be one that the Federal Reserve, Wall Street, and the White House will look back on with great nostalgia. New government data showed a slowing economy and accelerating inflation that dampened rate cut expectations and triggered a selloff in the stock market.
In the first quarter, gross domestic product (GDP) rose at a much worse-than-expected 1.6 percent, down from 3.4 percent in the October–December period.
Renewed inflation pressures were another critical finding in the latest GDP report.The GDP Price Index, a measurement of prices paid for goods and services by businesses, consumers, and governments, surged to a higher-than-expected 3.1 percent, up from 1.7 percent in the fourth quarter.
The Personal Consumption Expenditures (PCE) price index rose to a higher-than-expected 3.4 percent. Core PCE, which omits the volatile food and energy components, climbed to 3.7 percent.
