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The Federal Reserve faces a dilemma as consumers remain optimistic despite a slowdown in the economy, with Q1 GDP growth revised down to 1.3%. Market experts suggest the weak economic data is not a cause for major concern, indicating the consumer sector is holding up well. The Fed's recent interest rate hikes to a 23-year high are seen as a move to potentially counter a slowing economy, providing room for rate cuts if needed.
"The consumer is doing OK," Ned Davis Research strategist @edclissold says on Q1 GDP data. "I think it does get us closer to maybe what the Fed was looking at, which was potentially an economy that was slowing down some, and that would give them room potentially to lower rates." https://t.co/3moicUwWf1
"The market has certainly looked at any weak economic data... as a false alarm," SoFi head of investment strategy @LizYoungStrat says. Q1 GDP "was already below trend. ... This is not something that I think is terribly concerning." https://t.co/VkBPJSeKMs
The markdown in first-quarter GDP to 1.3% signals the economy slowed in 2024 after a torrid second-half of last year. No surprise. The Fed has raised interest rates to a 23-year high. But it's another thing to say the economy is weak. It isn't. Not yet... https://t.co/HBzSeRlKZg https://t.co/bE8Iir0rxa
