The U.S. economy grew 2,3 percent annually in the first quarter, the government reported Friday, offering a preliminary glimpse of how the 2017 fiscal stimulus package is affecting consumers and businesses this year. During the first three months of 2018, the economy suffered from mood swings. President Trump imposed tariffs on allies and rivals alike, stoking fears of a trade war. The revamped tax code changed business incentives and began putting more money in workers' paychecks. Still, the economy ended up accelerating slightly above the average annual growth rate it had posted since the recession ended nearly nine years ago. That pace is below the stronger 2.9 percent annualized rate recorded in the fourth quarter of 2017 and falls short of President Trump's goal of at least 3 percent. Most analysts, however, expect quarterly growth to hover around 3 percent for the remainder of the year. Given these results, we don't expect the Fed to revise its interest rate hike schedule.
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