The US economy shows solid growth despite slowing in Q1, driven by modest consumer spending and strong imports. Job growth has moderated but remains healthy, with low unemployment. Inflation has eased from 2022 highs but remains above the 2% target. New administration policies, particularly tariffs, introduce uncertainty, potentially increasing inflation and slowing growth. The Federal Reserve will monitor data closely and balance maximum employment and price stability goals before adjusting monetary policy.

Prepared by Christopher Adams and reviewed by editorial team.