The U.S. economy shows resilience despite the war with Iran

Soaring gasoline prices have done little to dampen consumer spending. The Commerce Department reported solid economic growth during the first three months of the year. Joe Raedle/ North America hide caption toggle caption Joe Raedle/ North America The U.S. economy grew at a solid pace in the first three months of the year, despite soaring energy prices triggered by the war with Iran. The Commerce Department said Thursday that the nation's gross domestic product grew at an annual rate of 2% in January, February and March. That's a significant improvement from the anemic 0.5% growth rate in the previous quarter, when economic activity was depressed in part by a six-week government shutdown. Government spending has largely rebounded, rising at a rate of 4.4% in the first quarter And consumers continue to spend freely in a wide range of areas, even as more of their paychecks are being gobbled up at the gas pump. Spending power may have been boosted during the quarter by tax refunds, which on average are about $330 larger this year than last. "I do think the tax refunds were really critical, particularly in March," says Mark Zandi, chief economist for Moody's Analytics. "That really does help particularly lower- and middle-income households who are more cash strapped. …