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[US] Q1 GDP Climbs to 2.0% But a 4.5% PCE Deflator Traps the Fed in an Extended Hold
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[US] Q1 GDP Climbs to 2.0% But a 4.5% PCE Deflator Traps the Fed in an Extended Hold

Macro Soup Newsroom Macro Soup Newsroom 3 min read

US Q1 GDP rebounded to 2.0% but a 4.5% PCE deflator and 3.4% YoY wage growth locked the Fed into an extended hold at 3.50-3.75% on April 29. Initial jobless claims at 189,000 show no labor market softening in sight.

Chart of US Q1 2026 GDP growth
Illustrates the 2.0% annualized GDP growth in Q1 2026, highlighting the rebound from the previous quarter amid ongoing economic resilience Source

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