Overview: GDP grew at a rate of 3.2% in the 1st quarter of 2010.  The Fed held constant its target for the federal funds rate at a range of 0.0%-0.25%.  Initial jobless claims fell by 24,000 to a level of 456,000 for the week ended 4/24.

According to the advance estimate, GDP grew at a real, annual rate of 3.2% in the 1st quarter of 2010. The increase primarily reflected primarily reflected positive contributions from private inventory investment, exports, and nonresidential fixed investment.  Partially offsetting these positive contributions were decreases in state and local government spending and in residential fixed investment, as well as an increase in imports, which are a subtraction from GDP. The deceleration in GDP, from a rate of 5.6% in the 4th quarter of 2009, came from a deceleration in private inventory investment and in exports, a larger decline in state and local government spending, and a downturn in residential fixed investment.  Partly offsetting these decelerations were an acceleration in personal consumption expenditures and a deceleration in imports.
 
The Fed held constant its target for the federal funds rate at a range of 0.0%-0.25% at its meeting on Wednesday. Dissenting from the decision was Kansas City Federal Reserve Bank President, Thomas Hoenig, who believes that continuing to express expectations of an exceptionally low federal funds rate for an extended period could lead future imbalances and increased risks to longer run macroeconomic and financial stability, while also limiting the FOMC’s flexibility to raise rates modestly.

Initial jobless claims fell by 11,000 to 448,000 for the week ended April 24th.