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The US economy grew at its slowest pace in two years in the first quarter, while prices rose at a faster rate — sending the markets into a tailspin Thursday and clouding President Joe Biden’s sunny outlook for American households heading into his reelection battle.

The data released by the Commerce Department showed that gross domestic product (GDP) grew at an annualized pace of 1.6% during the three-month period ended in March — below the 2.4% projected by economists polled by The Wall Street Journal.

The growth rate was the lowest since 2022 and came in much lower than fourth-quarter GDP, which was revised up to 3.4%, and marked a cooldown from the quarter prior, when it was 4.9%.

More troubling was that prices have remained sticky.

Thursday’s data also showed the personal consumption expenditures (PCE) price index excluding food and energy — a key gauge watched by the Federal Reserve as it weighs whether to cut interest rates — surged at a 3.7% rate in the first quarter, versus the central bank’s 2% target.

Investors and analysts put more weight on the high inflation figure than on signs the economy may finally be cooling, which would generally encourage the Fed to cut rates.

The Dow Jones Industrial Index plunged nearly 700 points after the data was released as investors all but gave up hope on the Fed slashing the 23-year high rates more than one time this year — and most likely not until the fall.

The Dow pared some of the losses, closing down 375 points, or 1%. The S&P 500 was down 0.5%, and the tech-heavy Nasdaq dropped 0.6%.

Data from the CME Group’s FedWatch tool showed the probability of a Fed rate cut in June at 10% odds, with bets on a September cut slipping below 58%, and a second cut in December given less than even odds.

“This report comes in with mixed messages,” said Olu Sonola, head of economic research at Fitch. “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.”

The report on GDP, which represents the value of all goods and services produced within a given period, showed that American consumers remain strong after years of hiring and wage growth. Spending was driven by healthcare, financial services and insurance, which offset a decline in goods, including motor vehicles and gasoline.

Biden attempted to spin the GDP data in his favor, touting that “the economy has grown more since I took office than at this point in any presidential term in the last 25 years.”

Gregory Daco, chief economist at the tax and consulting firm EY, noted that the underlying economy looks solid, though its slowing from last years unexpectedly fast pace.

The rise in imports that accounted for much of the drop in first-quarter growth, he noted, is a sign of solid demand by American consumers for foreign goods.

Still, Daco said that the economys momentum is cooling.

Its unlikely to be a major retrenchment, he said, but we are likely to see cooler economic momentum as a result of consumers exercising more scrutiny with their outlays.

US debt has soared to $33 trillion, the highest ever, with the debt-to-GDP ratio topping 100% — at 123%, per the International Monetary Fund, which projects the ratio to reach 130% by 2035.

The Fed has warned that stubbornly high inflation could persist, especially given the resilience of the labor market, which added a whopping 303,000 positions in March.

Though many of the job gains were reportedly taken by migrants — who have been occupying a growing chunk of the US workforce — a strong labor market historically keeps wages and consumer spending levels elevated, thus fanning inflation and interest rates.

As a result, Wall Street is now widely expecting Fed officials to slash two times by the end of the year — down from the previous forecast that there would be three rate cuts totaling 0.75 percentage points.

“Given the strength of the labor market and progress on inflation so far, it’s appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us,” Fed Chair Jerome Powell said on April 16.

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Skinner ‘great’ in return as Oilers force Game 7

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Skinner 'great' in return as Oilers force Game 7

After a week on the bench, Stuart Skinner returned to the net to help the Edmonton Oilers force a Game 7 in their second-round series against the Vancouver Canucks.

Last appearing in Game 3 after struggling to start the series, Skinner made 14 saves in the Oilers’ 5-1 win in Game 6 at Rogers Place in Edmonton, Alberta.

Game 7 will be played Monday at Rogers Arena in Vancouver as the winner will face the Dallas Stars in the Western Conference finals starting Thursday at the American Airlines Center in Dallas.

“I think by doing what we did tonight, I think we just showed a lot of desperation,” Skinner said on the ESPN broadcast. “Guys were blocking shots all over the place. I think both teams played great. You got to give a lot of credit to Vancouver, but you know Vancouver is going to come out really hard especially in their barn. I think we’re going to have to match that and bring some more.”

Averaging 3.80 goals per game during the playoffs while boasting a defensive structure that’s been among the strongest when it comes to limiting shots on goals and scoring chances is the formula the Oilers have used to come within a game of the Western Conference finals.

Figuring out how the Oilers could mesh their defensive structure with the most consistent version of Skinner, however, was one of those challenges they were trying to solve in a series in which the first five games were decided by a goal.

Especially when the Oilers limited the Canucks to 19.3 shots per game in the first three games only to find themselves down in the series with Skinner posting a 4.63 goals-against average and a .790 save percentage through Game 3.

Saturday saw the connection between the Oilers’ defensive structure and Skinner finally click.

The Oilers, who had limited teams to 24.91 scoring chances per 60, limited the Canucks to 18 scoring chances in 5-on-5 play. They also held the Canucks to just seven high-danger scoring chances and didn’t allow any in the second period.

Combining that defensive consistency with Skinner allowing only one goal on 15 shots added to an evening that saw the Oilers burst through for five goals. It was the third time this postseason and the first time in the second round that the Oilers have scored more than five goals.

Oilers captain Connor McDavid, who finished with three points, told the Sportsnet broadcast after the game that although Skinner didn’t face many shots he did “a great job” handling what McDavid considered to be dangerous chances.

“We never had a doubt,” McDavid said. “He’s a battler. He’s always been a battler. Our team always responds and he’s no different. He responded great and gave us a great performance.”

His role in the Oilers’ Game 6 win is the latest development in what has been another mercurial season for the second-year goaltender.

A year ago, Skinner was a rookie who emerged as the No. 1 goaltender for his hometown team. He helped the Oilers reach the second round only for them to be eliminated in six games by the eventual Stanley Cup champion Vegas Golden Knights.

Skinner was pulled over the final three games of the series, which led to an offseason filled with questions. Much like the Oilers themselves, Skinner had a difficult start to the season but found consistency once the club fired coach Jay Woodcroft and hired Kris Knoblauch.

In that time, Skinner solidified his place as the team’s No. 1 goaltender — which is what made his performances through the first three games so jarring. It led to him being pulled to start the third period in the Oilers’ Game 3 loss, with Knoblauch turning to Calvin Pickard in Games 4 and 5.

Pickard stopped 19 shots in the Oilers’ Game 4 victory while allowing three goals on 35 shots in their 3-2 loss in Game 5 to the Canucks.

Knoblauch said after Game 3 that Skinner would return to the lineup at some point, and that point was Saturday.

Now he and the Oilers are just a win away from the conference finals.

“I think obviously, to start off, I think Calvin was amazing when he got put in,” Skinner said. “Definitely got the job done and kept us in it. An unbelievable teammate. For me, I was able to get a little bit of rest and just work on my game and feel good about it again. I was able to come out and do what I had to do.”

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Barkov, ‘best player in the world,’ wins 2nd Selke

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Barkov, 'best player in the world,' wins 2nd Selke

NEW YORK — Florida Panthers captain Aleksander Barkov has won the Selke Trophy as the NHL’s best defensive forward, the league announced Saturday night.

Barkov, 28, is a two-time Selke winner after also finishing first in voting for the award in 2021. He was a big part of the Panthers allowing the fewest goals this season and won 57.3% of his faceoffs, ranking ninth among players with at least 50 games and 500 attempts.

The center from Finland received 156 of 194 first-place votes from members of the Professional Hockey Writers Association and was listed on all but two ballots.

Teammate and forward Matthew Tkachuk, speaking after Friday night’s series-clinching win over the Boston Bruins called Barkov “the best player in the world right now,” adding that “I don’t really even have the words for what he’s doing for our team right now.”

Barkov has led Florida to a second consecutive trip to the Eastern Conference final. After helping the Panthers to the Stanley Cup Final, where they lost to the Vegas Golden Knights last summer, he will lead his team into the Eastern Conference Finals on Wednesday, vs. the New York Rangers.

“We went through it last year, obviously, and that’s helped a lot,” Barkov told SportsNet Friday night after eliminating the Bruins. “But this year is a new year. We have new players, we’re just creating something new here, something really exciting. We’re really excited for this opportunity again, and we can’t wait to get going.”

Carolina Hurricanes veteran Jordan Staal finished second in voting, and Toronto Maple Leafs All-Star Auston Matthews finished third.

The Associated Press contributed to this report.

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Canada survives scare, now 5-0 at hockey worlds

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Canada survives scare, now 5-0 at hockey worlds

PRAGUE — Defending champion Canada had to recover from an early scare before rallying to beat Finland 5-3 for its fifth victory in five games at the ice hockey world championship Saturday.

Captain John Tavares set up the winning goal with his second assist with 8:28 remaining in the final period, finding Brandon Hagel at the left post to score into an open net. It was only the second shot on goal for Canada in the period.

Dawson Mercer finished it off with an empty net goal with 20 seconds left.

Canada joined Switzerland in second place in Group A, a point behind leader the Czech Republic. All three sealed playoff-round spots.

Also for Canada, Owen Power scored a goal and added two assists, Dylan Cozens had a goal and an assist, and Brandon Tanev scored. Jordan Binnington stopped 29 shots.

Jesse Puljujarvi led Finland with two goals, and Valtteri Puustinen got the other.

Canada was two goals down early in the first after Finland scored in a span of 2:16. Puljujarvi scored off a rebound 1:35 in, and Puustinen doubled the advantage on a power play.

Canada needed 97 seconds to tie it at 2.

Andrew Mangiapane seized the puck behind the goal before passing it to Cozens to net from the slot. Then Tavares seized the puck in his own half before skating down the left and feeding Tanev to knock in the equalizer from the crease.

The Czechs beat winless Britain 4-1, with Lukas Sedlak having two goals and an assist and captain Roman Cervenka recording four assists.

Sweden killed off a five-minute major before scoring three goals in a 26-second span in the middle period to pull away from Latvia in a 7-2 win that clinched a playoff-round berth.

The Swedes, who have not trailed in the tournament, preserved their perfect record through five games to lead Group B.

Latvia pulled even at 2-2 in the second in Ostrava but failed to capitalize after Rasmus Dahlin received a five-minute major and game misconduct for charging. The defenseman opened the scoring for Sweden in the first period.

Fabian Zetterlund then scored twice in a 17-second span. Nine seconds later, center Joel Eriksson Ek netted to make it 5-2. Marcus Johansson had a goal and two assists.

In Prague, Switzerland routed Denmark 8-0. Winger Kevin Fiala scored two goals and had an assist.

Center Nico Hischier opened the scoring and added two assists to leave the Danes in danger of not advancing.

In Group B, Germany beat winless Poland 4-2 for a fourth win while Slovakia also got a fourth victory by beating France 4-2 to move to third place, a point behind Germany in second.

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