Gross domestic product increased at a 3.1% in the first quarter, revised down slightly from the 3.2% pace it estimated last month. The revision was forecast to be lower, at 3.0%, so this reading is seen as a positive sign of the strength of the economy.
Gross domestic output--the average of GDP and GDI--increased by 2.2% for Q1, up from 1.3% in Q4.
Richard Clarida, Vice Chairman of the Fed, spoke at the Economic Club in New York today. Given the inconsistency of recent data, his comments were widely anticipated. He doubled down on transitory language to describe inflation remaining below the Fed's 2% target, however, some interpreted his comments as dovish as he noted that "downside risks could call for more accommodative policy." He added that the Fed "would consider interest rate cuts if the growth outlook darkens."
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