What's going on?

U.S. growth slowed in the fourth quarter of 2014 and only grew at 2.2% since the beginning of 2015. This occurred despite a 4.4% increase in consumer spending, the quickest since 2006 and faster than previously estimated by economists. Some economists are worried the decreased growth rate is a sign of deceleration to occur in 2015. The Fed commented that the U.S. economy remains strong but that they are rolling back projections for interest-rate increases and will keep watch on the growth forecasts.

What does this mean?

Part of the cause of the U.S. economy slowing in the first few months of 2015 was due to the freezing winter weather and storms in the northeast of the U.S., preventing some consumer spending and commerce from occurring. Another cause is the strong dollar, which has increased the cost of exports. The increase in overall consumer spending in 2014 and 2015 can be attributed partially to higher spending on healthcare. Economists seem to be split on the state of the U.S. economy, as some argue that the strong dollar and high stock market are signs of recovery, while others point to the drop in orders of durable goods and stagnant or decelerating growth rates as well as the falling price of oil as proof of a shaky economy.

Why should I care?

For domestic and foreign markets, the fate of the U.S. economy is incredibly important. U.S. markets often dictate a response from global markets, and a stagnation or deceleration in growth is a negative sign when many believed the economy was recovering to pre-crisis levels. Let�s not despair; because we may be able to blame the record levels of snow in Boston and the northeast for at least a partial decline in growth since the beginning of 2015. Sinking oil prices are still providing a buying opportunity as many stocks in the industry are devalued. The strong dollar is keeping the euro and other currencies at low levels, which may be bought on currency trading exchanges.