Dimming Growth Puts Fed on Pause

Big Picture

May 1, 2015

A first-quarter stumble in US GDP growth drove the narrative this week as it pushed back expectations of a Fed rate hike. News that the US economy grew just 0.2% during the first three months of the year was well below expectations and comes on the heels of other less than supportive growth and earnings data. The Fed, which met mid-week for a two-day policy meeting, said the dimming growth has given it pause when it comes to the timing and mechanics of an interest rate increase. But they also said the slow growth patch was viewed as temporary and data released near week’s end seemed to confirm that view.

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