Us Economic Growth Slows in Fourth Quarter
The US economy's slowdown in the fourth quarter, with growth slowing from 3.1% to 2.3%, has persisted into early 2024, amid concerns about tariffs and their impact on consumer confidence. The loss of momentum is attributed to factors such as snowstorms, cold temperatures, and unseasonably high prices resulting from tariffs imposed by President Trump's administration. Despite this, the economy remains above the Federal Reserve's non-inflationary growth pace.
- This slowdown highlights the fragility of economic growth in a post-pandemic world where external shocks can quickly impact consumer confidence and spending.
- How will policymakers balance the need to mitigate the effects of tariffs with the ongoing pressure to stimulate economic growth, given the current state of consumer and business confidence?