The U.S. Commerce Department released gross domestic product data on Thursday. The U.S. preliminary gross domestic product increased by 0.5% in the first quarter, missing expectations for a 0.6% gain, after a 1.4% rise in the fourth quarter. It was the slowest growth since the first quarter of 2014.

The slower rise was mainly driven by a drop in business investment. Business investment plunged by 5.9% year-on-year in the first quarter, the biggest decline since the second quarter of 2009, driven by a decline in oil and gas exploration.

Consumer spending grew 1.9% in the first quarter, the slowest pace since the first quarter of 2015, after a 2.4% increase in the fourth quarter.

The personal saving rate rose to 5.2% in the first quarter from 5.0% in the fourth quarter.

Exports declined 2.6% in first quarter as a strong U.S. dollar weighed on exports, while imports increased 0.2%.

The personal consumption expenditures (PCE) price index rose 0.3% in the first quarter, exceeding expectations for a 0.2% gain, after a 0.3% increase in the fourth quarter.

The personal consumption expenditures (PCE) price index excluding food and energy increased 2.1% in the first quarter, beating forecasts of a 1.9% rise, after a 1.3% gain in the fourth quarter.

The personal consumption expenditures (PCE) price index is the Fed's preferred measure for inflation. The Fed's inflation target is 2%.

The U.S. Labor Department released its jobless claims figures on Thursday. The number of initial jobless claims in the week ending April 23 in the U.S. increased by 9,000 to 257,000 from 248,000 in the previous week. The previous week's figure was revised up from 247,000.

Analysts had expected jobless claims to rise to 260,000.

Jobless claims remained below 300,000 the 60th straight week. This threshold is associated with the strengthening of the labour market.

Continuing jobless claims decreased by 5,000 to 2,130,000 in the week ended April 16. It was the lowest level since November 2000.

The Fed's released its interest rate decision on Wednesday. The Fed kept its interest rate unchanged at 0.25% - 0.50% as widely expected by analysts.

The Fed said in its statement that the U.S. economic activity slowed, while the labour market continued to improve.

According to the Fed household spending rose moderately, despite higher real income.

Inflation remained low due to lower energy prices and falling prices of non-energy imports, the Fed noted.

The Fed expects inflation to rise to 2% over the medium term.

The Fed also said that it continued to closely monitor inflation indicators and global economic and financial developments, adding that an interest rate hike will depend on the incoming economic data.

Only Kansas City President Esther George voted for an interest rate hike by 0.25%.

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