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• “Despite the sharp deceleration in Q1, we remain upbeat about the outlook for growth in the US. We expect the economy will rebound in Q2 and beyond, similar to last year. Underscoring the risks of extrapolating the Q1 weakness forward, we note that, excluding trade, inventories, and government spending, the private domestic economy grew 1.1% annualized in Q1. In 2014, that metric rose similarly in the first quarter (+1.0% annualized) and then advanced by an average of 4.1% annualized over the remaining three quarters of the year.” —Michelle Girard, RBS Securities
• “For now this is a huge negative for a Fed that is looking to normalize rates. The economy is not in a period of acceleration as previously thought. Now it is hard to pin down where growth will settle, let alone when the Fed can consider rate hikes again.”— Robert Brusca, FAO Economics.
• “Our research suggests GDP is likely to rebound in the second quarter led by a pick-up in consumer spending. However, inflationary pressures remain modest and core price indexes are expected to remain below Fed targets for the next few quarters. Fed policy is likely on hold until well into the second half given the slow pace of economic activity and below-target increases in prices.”— Bob Hughes, American Institute for Economic Research.
• “You were forewarned, first quarter economic activity was not pretty. But that was pretty ugly. But the positive takeaway is that all of the temporary factors that held activity back were just that...temporary.” — Jennifer Lee, BMO Capital Markets
• “Despite the sharp deceleration in Q1, we remain upbeat about the outlook for growth in the US. We expect the economy will rebound in Q2 and beyond, similar to last year. Underscoring the risks of extrapolating the Q1 weakness forward, we note that, excluding trade, inventories, and government spending, the private domestic economy grew 1.1% annualized in Q1. In 2014, that metric rose similarly in the first quarter (+1.0% annualized) and then advanced by an average of 4.1% annualized over the remaining three quarters of the year.” —Michelle Girard, RBS Securities
• “For now this is a huge negative for a Fed that is looking to normalize rates. The economy is not in a period of acceleration as previously thought. Now it is hard to pin down where growth will settle, let alone when the Fed can consider rate hikes again.”— Robert Brusca, FAO Economics.
• “Our research suggests GDP is likely to rebound in the second quarter led by a pick-up in consumer spending. However, inflationary pressures remain modest and core price indexes are expected to remain below Fed targets for the next few quarters. Fed policy is likely on hold until well into the second half given the slow pace of economic activity and below-target increases in prices.”— Bob Hughes, American Institute for Economic Research.
• “You were forewarned, first quarter economic activity was not pretty. But that was pretty ugly. But the positive takeaway is that all of the temporary factors that held activity back were just that...temporary.” — Jennifer Lee, BMO Capital Markets