The gross domestic product grew at an annual rate of 1.6% in the first quarter, according to the Bureau of Economic Analysis, below the 2.2% consensus forecast. Compared to the fourth quarter of 2023, the real GDP in the first quarter reflects decelerations in consumer spending, exports, and government spending.  While this could be a sign that the U.S. economy may be slowing from the weight of higher interest rates, the Federal Reserve will hold the federal-funds rate steady for now, awaiting clearer signals of slowing economic activity before implementing a rate cut. With inflation picking up in March and the economy continuing to exhibit strength, the Fed will be watching employment data and factory orders this week.