Overview
- Fourth‑quarter GDP rose at a 1.4% annualized pace versus forecasts near 2.5%–2.8%, following 4.4% in Q3 and leaving full‑year growth at 2.2% compared with 2.8% in 2024.
- The PCE price index increased 2.9% year over year in December, slightly above the 2.8% economists expected.
- President Trump blamed the 43‑day autumn shutdown for “at least two percentage points” of lost growth, a claim the nonpartisan CBO counters with an estimated total GDP loss of about $11 billion.
- The Supreme Court invalidated most of Trump’s tariffs, undercutting a central trade policy tool and adding to uncertainty.
- Major U.S. stock indexes turned negative shortly after the open as investors weighed the softer growth, firmer inflation reading, and the court decision.