According to most recent data released on Thursday, US economic growth slowed more than anticipated at the end of next month.
Gross domestic product ( GDP ), the country’s output of goods and services, increased from October through December at a 2.3 % annual rate, according to the Commerce Department. However, it was below the 2.6 % expected.
For the full year, the economy grew 2.8 %, compared with 2.9 % in 2023, showing steady growth.
It comes after the US Federal Reserve left its benchmark interest rate constant following three reductions since September. With the economy rolling down, Fed Chair Jerome Powell told writers,” we do not need to be in a hurry” to produce more cuts.
The Fed is likewise cautious because, in recent months, inflation has stagnated after hitting four-decade peaks in the mid-2022.
The prospect is cloudier, yet. Trump has promised to lower taxes and fewer company regulations, which could increase GDP growth.
Although his plan to impose heavy import fees and arrest thousands of illegal immigrants to the United States might result in slower economic growth and higher costs.