Overview

• U.S. GDP growth slowed to 1.6% in the first quarter of 2024, below the forecasted 2.5%, indicating a significant economic deceleration.
• Inflation remains persistent with core inflation rates rising, particularly in the services sector, challenging the Federal Reserve's strategies.
• Despite the economic slowdown, consumer spending on services surged, suggesting underlying economic resilience.
• Federal Reserve officials are cautious about cutting interest rates this year, with some considering additional hikes if inflation does not ease.
• Experts warn that the current economic trends may lead to a stagflation scenario similar to the 1970s, affecting markets and economic stability.