FF News Logo
Wednesday, October 22, 2025
PPRO_Almanac_Fintech-Finance-News

Breaking News

EXCLUSIVE: “TradFi Versus DeFi: From Disruption to Definition” – Jessica Blue, Money20/20 in ‘The Paytech Magazine’ The Paytech Magazine Issue #17 World’s Largest Fintech Meetings Event Expands to Europe with 2026 Lisbon Launch Innovation Celebrated as Winners of Open Banking Expo Awards 2025 Revealed Fintech Revolution Summit 2025 How Plumery Is Empowering Banks With Freedom U.S. Bank Avvance Launches Customized Embedded Financing Offering Mambu Launches Composable Banking Approach in the US to Future-Proof the Next Generation of Credit Unions CloudWalk Surpasses $1.2 Billion in Annualized Revenue as AI Drives Profitable Hypergrowth Smartstream and ActiveViam Collaborate to Meet Demands for Collateral Optimisation Allica Bank Acquires Fintech Kriya in a Move to Deliver £1 Billion of SME Working Capital Finance by 2028 Moneypool Selects Flagright for Real‑Time Transaction Monitoring Mako Financial Technologies and Trulioo Partner to Streamline KYC for Wealth Advisors Across the U.S. and Canada Previsico Secures Series A Funding to Accelerate Global Growth Interpolitan Money Launches Fast-Track Property SPV Accounts to Simplify International Property Investments
US economy expanded

April 27 2023

US GDP: Fed Is in a Tough Spot Trying to Navigate Slower Growth and Stickier Inflation – Validus Risk Management

Share this post:

Share on LinkedIn Share on WhatsApp

The US economy expanded at an annualized rate of 1.1% in the first quarter of 2023, according to the US Bureau of Economic Analysis’ (BEA) first estimate, released on April 27th. This figure is lower than the 2.6% growth recorded in the last quarter of 2022 and worse than the market expectation for a 2% expansion.

The report also revealed that the GDP Price Index edged higher to 4% in the same period from 3.9%, compared to the market expectation of 3.8%. Additionally, the Personal Consumption Expenditures (PCE) Prices rose to 4.2% from 3.7% on a quarterly basis.

According to the BEA, the increase in real GDP can be attributed to consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment. However, these gains were partly offset by decreases in private inventory investment and residential fixed investment, while imports increased.

Despite the disappointing GDP data, the US Dollar Index gained traction, climbing toward 101.70. A stronger-than-expected increase in the inflation component of the GDP, which could allow the Federal Reserve (Fed) to delay a policy pivot, appears to be helping the US Dollar find demand. The 2.26 percentage point negative contribution of the change in private inventories may also be making the GDP reading look worse than it actually is, as inventories tend to fluctuate.

Commenting on US GDP, Ryan Brandham, Head of Global Capital Markets, North America at Validus Risk Management, said: “US GDP came in at 1.1% – a weaker print than expected. The lagged effects of the 2022-23 US rate hiking cycle may finally be slowing growth. A mixed bag of data today points to slower growth and stickier inflation, and the Fed is in a tough spot trying to navigate these two forces.”

People In This Post

Ryan Brandham

Validus Risk Management

Companies In This Post

Validus Risk Management
  1. EXCLUSIVE: “TradFi Versus DeFi: From Disruption to Definition” – Jessica Blue, Money20/20 in ‘The Paytech Magazine’

    The Paytech Magazine

     Read more
  2. The Paytech Magazine Issue #17

    News

     Read more
  3. World’s Largest Fintech Meetings Event Expands to Europe with 2026 Lisbon Launch

    Events

     Read more
  4. Innovation Celebrated as Winners of Open Banking Expo Awards 2025 Revealed

    Events

     Read more
  5. Fintech Revolution Summit 2025

    Events

     Read more
Future Identity Festival 2025 x FF News- Website banner | FFNews
More On