Recent Economic Developments - Mixed Economic Signals Continue
The economy posted tepid growth in the first quarter. Consumer spending growth slowed, business investment
declined, and job losses continued. Rapid developments in Iraq and fickle winter weather have made it difficult to discern underlying economic trends. A key uncertainty is whether positive developments, like declining oil prices and increasing consumer confidence, will provide a sustained lift to the economy. Another uncertainty is future tax policy; many forecasters see a pickup in growth assuming enactment of significant tax relief.