US economy grows at 1.8 less than forecast

The US economy has witnessed less than projected growth because of slower Government spending. According to the Bloomberg news survey, the Economists projected 2% growth. But the GDP rose at a 1.8% annual rate which is much lower than earlier quarter GDP growth rate of 3.1%.

This less than projected GDP growth would need the US Fed to maintain record monetary stimulus and interest rate to near zero. Earlier this month, Fed had confirmed of keeping interest rate at as low as .25% during their last policy meet as it has been doing this for long...