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Q4 2025 GDP Growth Slows to 1.4% Amid Shutdown

2/23/2026

Center

Economy Decelerates Amid Shutdown

GDP growth slowed to 1.4% in Q4 2025 due to a government shutdown.
Federal spending declined 5.1%, weighing on growth.
Private domestic demand grew by 2.4%, driven by consumer spending on services.
Core Personal Consumption Expenditures (PCE) inflation stood at 3.0%, suggesting the Fed may not lower rates soon.
Analysts say the economy is decelerating without a sharp downturn.

Left

Waller Maintains Rate Stance

Christopher J. Waller, a Federal Reserve official, says ruling won't change his stance on rate cuts.
He supports pausing rate reductions if the labor market stabilizes.
U.S. President Donald Trump announced a 15 percent tariff under a statute, potentially lasting 150 days, with Waller noting that central bank wisdom suggests tariffs should not drive policy.
Waller acknowledged potential benefits but questioned the ruling's long-term impact on spending and inflation.

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Economy Decelerates Amid Shutdown

GDP growth slowed to 1.4% in Q4 2025 due to a government shutdown.
Federal spending declined 5.1%, weighing on growth.
Private domestic demand grew by 2.4%, driven by consumer spending on services.
Core Personal Consumption Expenditures (PCE) inflation stood at 3.0%, suggesting the Fed may not lower rates soon.
Analysts say the economy is decelerating without a sharp downturn.

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