WASHINGTON -- The economy grew at a slower pace than forecast in the first quarter as government spending declined by the most since 1983.

Gross domestic product rose at a 1.8 percent annual rate from January through March after a 3.1 percent pace in the last three months of 2010, the Commerce Department said Wednesday. Economists had projected 2 percent growth.

To keep spurring the expansion, Federal Reserve policy makers said Wednesday they'll complete their $600-billion round of stimulus through June.

While slower than the previous three months, a reflection of higher gasoline prices, consumer spending climbed more than projected in the first quarter.

For all of 2010, the U.S. economy grew 2.9 percent, the most in five years.-- Bloomberg News

Penny trial latest ... One injured in LIE tanker crash ... Fires on LI Credit: Newsday

Vet gets $2.3M in alleged assault by cops ... Penny trial latest ... Suspect in resort killing found dead ... Family wheely racing

Penny trial latest ... One injured in LIE tanker crash ... Fires on LI Credit: Newsday

Vet gets $2.3M in alleged assault by cops ... Penny trial latest ... Suspect in resort killing found dead ... Family wheely racing

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