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Economy Shrinks as Imports Surge, Fed Holds Rates Steady

Economy Shrinks as Imports Surge, Fed Holds Rates Steady

May 07, 2025
USA TODAY

The US economy contracted in Q1 due to surging imports, but robust consumer spending and business investment offset the decline, while the Fed held interest rates steady amid elevated inflation and tariff uncertainties, signaling a cautious approach as it assesses the trade war's impact.

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