The Q4 GDP report indicates a decline, although consumer spending has increased, reflecting a 4.2% annualized growth primarily in healthcare and recreational goods. While the annual growth rate of the US economy in 2024 is healthy at 2.8%, it has slowed from 2023's 2.9%. Inflation-adjusted GDP for late 2024 was slightly lower than expected at 2.3%. Analysts express concern that increased consumer spending may simply reflect rising prices rather than true economic resilience. Additionally, the Federal Open Market Committee (FOMC) recently decided to maintain interest rates, with Chair Powell emphasizing that there's no urgency to lower them amidst uncertain tariff policies that might impact imports and inventories, key areas to monitor as economic conditions evolve. The economic landscape remains challenging with key figures still in flux, complicating future forecasts.

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