The U.S. economy grew 2.5% in the first three months of 2013, missing the 3%-plus expansion that some economists had expected. Consumer spending grew 3.2%, but the broader economy was held back by government spending cuts. "The economy is in a battle between fiscal drag on one side and monetary stimulus on the other," said Jim O'Sullivan, chief U.S. economist for High-Frequency Economics. "Over time, the Fed is winning."

Related Summaries