Economy Statement for the Treasury Borrowing Advisory Committee

IntroductionDespite multiple winter storms in January creating a drag early in the quarter, February and March saw stronger performance, indicating that economic growth likely continued in the first quarter of 2025, albeit at a slower pace compared to the previous quarter. Meanwhile, labor markets picked up strength at the end of the first quarter, recovering from storm-ridden January: as of March, private-sector employers added 325,000 jobs during the first two months of this Administration. In addition, inflation reads for February and March were favorable owing to downward pressures from energy prices and core goods, as well as significantly slower inflation for key core consumer services. On balance, economic data for the first quarter illustrated the U.S.