Us Economic Growth Slows Down in Fourth Quarter
U.S. economic growth slowed to a 2.3% annualized rate in the fourth quarter, with some signs of cooling persisting into early this year due to cold temperatures and concerns about tariffs hurting spending. The slowdown was partly offset by upgrades to government spending and exports, but consumer spending, which accounts for more than two-thirds of the economy, still grew at a 4.2% rate. Despite the slower growth, the overall trajectory of the economy is still above the Federal Reserve's target of 1.8% non-inflationary growth pace.
- The persistence of cooling signs in early this year highlights the need for policymakers to be proactive in addressing supply chain disruptions and inflation concerns that could have long-term implications for economic stability.
- How will the ongoing impact of tariffs on consumer confidence and spending patterns influence the Federal Reserve's future monetary policy decisions?