Daily Rewind: Slow start to 2017
💁🏻 You may be living your *best life* this year, but the U.S. economy got a slower start to 2017. It only grew 1.2% in the first quarter. Here’s what that means:
- The 1.2% growth was slightly better than the 0.7% that was initially estimated.
- American consumers were mainly to blame for the slow growth. Consumer spending declined at the beginning of the year, as did government spending.
- The Federal Reserve predicts the economy will grow 2% this year. The Fed has been showing confidence in the economy and will likely raise interest rates in June.
- President Trump is seeking 3% annual growth, though he promised 4% on the campaign trail. The U.S. economy hit 4% growth several times during the 1990s, but hasn’t since 2000.
- America’s economy has been expanding slowly but steadily since the recession ended in 2009.
- The Commerce Department’s report is just one measure of the U.S. economy. We’ll see how many jobs were added last month when the Labor Department releases its monthly report on Friday.
Other business news to know:
Trump says Germany is “very bad” on trade. The president criticized German trade during a meeting with European Union officials today in Brussels. German media quoted Trump as saying: “The Germans are bad, very bad. Look at the millions of cars they’re selling in the U.S.” It isn’t the first time Trump has criticized Germany’s auto trade. In January, he said Germany’s BMW German Chancellor Angela Merkel defended her country’s business in March, saying “There are about 750,000 jobs created by German companies in the USA.” Read more from CNNMoney’s Mark Thompson and Charles Riley.
Want more news? Check these stories out:
*Hillary Clinton compares Trump to Nixon at Wellesley (Washington Examiner)
*Comey acted on Russian intel he knew was fake, sources say (CNN Politics)
*Literally everyone is traveling this Memorial Day weekend (Time)
That’s all for today. Have a ridiculously delightful Memorial Day weekend! 🇺🇸🌭🍔 We’ll see you back here on Tuesday.
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