US Economy Faces Slowdown Amid Inflation Concerns

The US economy experienced a slower growth rate of 1.6% in the first quarter of 2024, falling short of expectations, with concerns arising over rising inflation levels. Consumer spending remained robust, but other sectors like exports and government spending decelerated.

The Federal Reserve faces a dilemma regarding potential interest rate hikes to combat inflation, with market reactions including decreased S&P 500 futures and increased U.S. 10-year yields. Despite the slowdown, underlying indicators suggest a solid economy with the Fed's efforts to manage inflation showing mixed results.