U.S. GDP grew at 1.6% annual rate in Q1, falling short of expectations

U.S. Gross Domestic Product (GDP) growth fell shy of expectations in the first quarter of 2024, increasing at an annualized rate of 1.6%, according to the Bureau of Economic Analysis.

The data marked a significant slowing of economic growth after the 3.4% posted in the final quarter of 2023.

Industry experts had expected the GDP to grow at a 2.4% annualized rate, CNBC reported. The DOW Jones, S&P 500, and NASDAQ indices were all down as of press time.

Some analysts suggested that the data could put off the prospect of an interest rate cut from the Federal Reserve.

"We are not far from all rate cuts being backed out of investor expectations. It forces [Fed Chair Jerome] Powell into a hawkish tone for next week’s [Federal Open Market Committee] meeting," CIBC Private Wealth US CIO David Donabedian told CNBC.

Ben Whedon is an editor and reporter for Just the News. Follow him on X, formerly Twitter.