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U.S. economy grew at 2% annual rate in Q1 2026

financeApr 30, 202618115

The U.S. economy expanded at a 2.0% annualized rate in the January through March quarter, the GDP report showed. Growth was driven largely by stronger business investment even as consumer spending cooled, leaving the print below analysts' 2.2% forecast. Rising energy prices as the war in Iran began to affect markets and lingering effects from last fall's 43-day federal shutdown tempered the quarter. A cooler-than-expected start to 2026 tightens the Federal Reserve's policy trade-offs and could pressure risk assets if momentum does not pick up.

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