1. U.S. economy slows in first quarter as consumer spending brakes sharply

    U.S. economy slows in first quarter as consumer spending brakes sharply

    The U.S. economy slowed in the first quarter as consumer spending grew at its weakest pace in nearly five years, but the setback is likely temporary against the backdrop of a tightening labor market and large fiscal stimulus. Job seekers apply for the 300 available positions at a new Target retail store in San Francisco, California August 9, 2012.

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    1. Tax cuts and government spending increases should lead to better overall economic activity.
    2. It is increasingly difficult to argue that the 2 percent inflation target hasn't already been breached.
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