The Globe and Mail reports in its Friday edition that the growth of the U.S. economy slowed in the first quarter of the year, reaching its lowest pace in almost two years. A Reuters dispatch to The Globe reports that this was due to a decrease in consumer spending and an increase in the trade deficit. However, the inflation rate has gone up, which means that it is likely that the Federal Reserve will not lower the interest rates before September. The cooler-than-expected growth reported by the Commerce Department in its snapshot of first quarter gross domestic product on Thursday also reflected a slower pace of inventory accumulation by businesses and a downshift in government spending. Still, domestic demand remained solid, underpinned by business investment and a recovering housing market. Fitch's Olu Sonola says: "This report comes in with mixed messages. If growth continues to slowly decelerate, but inflation strongly takes off again in the wrong direction, the expectation of a Fed interest-rate cut in 2024 is starting to look increasingly more out of reach." Spending is likely to cool this year. Lower-income households have depleted their pandemic savings and are largely relying on debt to finance purchases.