US Records Lowest Q1 Real GDP Annualized Rate Since 2023, Core PCE Price Index Hits New High

According to PANews, the United States has reported its lowest first-quarter real GDP annualized rate since 2023, at 1.6%. This marks a significant downturn in the country's economic performance. In contrast, the core PCE price index, a key inflation indicator, has seen a sharp rebound from the previous month. The first quarter annualized rate for the index has hit a new high since the second quarter of 2023, at 3.7%. This suggests a surge in inflation, which could potentially impact the country's economic stability. These contrasting figures highlight the complex economic challenges facing the United States. The low GDP growth rate indicates a slowdown in economic activity, while the high PCE price index points to increasing inflationary pressures. This could potentially lead to a difficult balancing act for policymakers, as they seek to stimulate economic growth while keeping inflation in check.