The US economy expanded slowly in the last quarter, but ended a robust year with growth capped at 2.3%, according to official data released on Thursday. The reading fell short of economists’ expectations of a 2.6% increase.
President Donald Trump has promised to rapidly cut prices and boost manufacturing, but his key economic plans have raised concerns among US firms and economists that tariffs would worsen inflation. The Federal Reserve kept interest rates steady, citing stable unemployment levels and slightly elevated inflation.
The economy’s growth is heavily reliant on consumer spending, which surged 4.2% in the fourth quarter, offsetting a decline in inventories and investment. Trump has publicly demanded rate cuts, but Fed Chairman Jerome Powell said policymakers would be watching closely as the new administration outlines its policies to gauge their impact on the economy.
Source: https://www.theguardian.com/business/2025/jan/30/us-economy-gdp-trump