Summary
- According to the US Commerce Department, GDP in the fourth quarter of last year rose 1.4% at an annual rate, well below the market forecast of 2.8%.
- The slowdown was attributed to a prolonged period of high interest rates that has weakened growth in consumption and investment.
- President Trump said the Democrats' shutdown cut GDP by at least 2 percentage points and urged rate cuts.
According to the US Commerce Department on the 20th (local time), gross domestic product (GDP) in the fourth quarter of last year rose at an annual rate of 1.4%. This was well below the market consensus of 2.8%.
The slowdown is seen as stemming from weakening growth in consumption and investment amid a prolonged period of high interest rates.
Earlier, US President Donald Trump also blamed Democrats for the weak GDP figure. Posting on Truth Social, he said, "The Democrats' shutdown knocked at least 2% points off GDP," adding, "There must be no shutdown."
He also urged interest-rate cuts. President Trump criticized Federal Reserve Chair Jerome Powell, saying, "He is always too late."
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
