US economic growth slowed more than expected at the end of last year, according to latest data released on Thursday.
ADVERTISEMENTThe Commerce Department said gross domestic product (GDP) — the economy’s output of goods and services — expanded at a 2.3% annual rate from October through December. 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 unchanged after making three cuts since September. With the economy rolling along, Fed Chair Jerome Powell told reporters, “we do not need to be in a hurry” to make more cuts.
The Fed is also cautious because progress against inflation has stalled in recent months after falling from four-decade highs hit in mid-2022.
The outlook is cloudier, however. Trump has promised to cut taxes and ease regulations on business, which could speed up GDP growth.
Although his plan to impose big taxes on imports and to deport millions of immigrants working in the United States illegally could mean slower growth and higher prices.
