Advertisement

Slower Growth, Stronger Inflation Could Leave Fed in a Bind

Slower Growth, Stronger Inflation Could Leave Fed in a Bind

Thursday's initial measure of U.S. economic activity at the start of the year showed slower growth than expected, but worse inflation. The first-quarter data was the “worst of both worlds,” writes David Donabedian, chief investment officer of CIBC Private Wealth. With consumer spending rising less quickly and federal spending down, growth in gross domestic product fell short of all estimates during the first quarter.