U.S. economic growth may cool in Q1 as Fed hikes rates

The U.S. economy is expected to grow moderately in the first quarter of 2023 as the Federal Reserve pushes ahead with its monetary tightening campaign. The market expects that the annualized quarterly rate of real GDP in the first quarter of the United States will be 2.0%, which has slowed down from the 2.6% growth rate in the fourth quarter of last year. Data are expected to show that while U.S. economic growth has weakened, it continues to show some signs of strength. Economists expect strong consumption growth in the first quarter to offset the drag from net exports and inventories.