In the longer run, the Fed expects real annual growth in the United States to fall to 1.8 percent. Imports fell and exports rose more than expected, narrowing the merchandise trade deficit for the first time in six months. But the shopping surge receded when the new year started; consumer spending grew only 1.1 percent in the first quarter. For several years, first-quarter growth rates have been weaker than the longer-term trends indicated, only to rebound in later months. At last month’s meeting, Fed officials raised interest rates and affirmed that they expected two more increases this year.

Source: New York Times April 27, 2018 09:00 UTC