U.S. GDP Growth Falls To 1.4%, Raising Fed Policy Questions

The U.S. economic growth slowed sharply in the final months of 2025, while inflation remained elevated, according to new government data. Gross domestic product rose at an annualized 1.4% rate in the fourth quarter, well below the 2.5% forecast from economists surveyed by Dow Jones.

The data was released by the Commerce Department. For all of 2025, the economy grew 2.2%, down from 2.8% in 2024.

BREAKING

The Quarter 4 GDP came in well below expectations at just + 1.4% - thanks to the longest government shutdown in history manufactured by the Democrats.

Are they intentionally trying to sabotage the economy? pic.twitter.com/WCCFxzHItS

— Conservative Brief (@ConservBrief) February 20, 2026

Inflation showed little improvement. The core personal consumption expenditures index rose 3% in December, above the Federal Reserve’s 2% target.

Breaking news: The US economy grew at an annualised rate of just 1.4% in the fourth quarter, down sharply on the previous three-month period and below Wall Street expectations. https://t.co/Yl6jWai4bP pic.twitter.com/GV1mZHVfLD

— Financial Times (@FT) February 20, 2026

Headline inflation increased 2.9%. Both measures rose faster than expected, adding pressure to interest rate decisions.

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Employment Up and Inflation Down, New BLS Report Shows

By Nicole Huyer via The Daily Signal | February 18, 2026 Last week, the Bureau of Labor Statistics released its January 2026 Current Employment Statistics and consumer price index reports. Here’s what you need to know: * Headline job growth exceeded expectations. * The private sector grew while government payrolls contracted. * Unemployment

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