US Gross Domestic Product slowed to 1.8 percent during the first quarter of the year compared to 3.1 percent for the final quarter of 2010. The actual result fell short of projections by the Commerce Department of 2 percent growth for the economy.
The weaker than expected GDP result likely factored in the Federal Reserve’s decision to complete the current round of stimulus spending (“QEII”) scheduled to conclude in June. The fed also announced yesterday that it would continue to keep interest rates at the current historically low rate capped at 0.25 percent for an “extended” period of time.
Source: Bloomberg
