The U.S. Economy's Growth Slowed Significantly in the Fourth Quarter, with Trump Administering a Preemptive Dose to the Market

February 20 — U.S. Q4 economic growth slowed more than expected last quarter, dragged by last year’s government shutdown and cooling consumer spending. Tax cuts and AI investments, however, are seen supporting economic activity this year. The Commerce Department’s Bureau of Economic Analysis (BEA) on Friday released preliminary Q4 GDP data showing the economy expanded at a 1.4% annual pace. Reuters-surveyed economists had forecast a 3.0% growth rate, but the survey (completed before Thursday’s data) noted the December trade deficit widened to a five-month high. Ahead of the report, former President Trump posted on social media: “The government shutdown cost U.S. GDP at least 2 percentage points. That’s why they (Democrats) want another small shutdown. Let’s not shut down again! Also, lower interest rates!” (FXStreet)