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US Economic Growth Slows to 1.4%, Missing Projections; Fed Rate Cuts Re-enter Discussion
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US GDP cools to 1.4%, Fed rate cuts back in focus as inflation persists
M
Moneycontrol
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20-02-2026, 19:49
US GDP cools to 1.4%, Fed rate cuts back in focus as inflation persists
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US GDP grew at an annualized rate of 1.4% in Q4 2025, significantly below the 2.5% forecast.
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The government shutdown is estimated to have subtracted about one percentage point from growth, impacting government spending and investment.
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Consumer spending slowed to 2.4%, while exports declined, contributing to the overall economic slowdown.
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Despite the headline figure, underlying demand indicators like final sales to private domestic purchasers showed steady private-sector demand.
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Inflation remained elevated, with the core PCE price index at 3% and headline PCE at 2.9%, both above the Fed's 2% target.
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