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

BlockBeats News, February 20th - Due to the impact of last year's government shutdown and slowing consumer spending, the U.S. economy's growth rate in the fourth quarter slowed more than expected. However, tax cut policies and investments in the field of artificial intelligence are expected to support economic activity this year.

The U.S. Department of Commerce's Bureau of Economic Analysis released preliminary data on fourth-quarter GDP on Friday, showing that the gross domestic product (GDP) grew at an annual rate of 1.4% last quarter. Economists surveyed by Reuters had previously predicted a GDP growth rate of 3.0%. However, the survey, completed before the data released on Thursday, showed an expansion of the trade deficit in December to its highest level in five months.

Prior to the report's release, Trump posted on social media, stating: "The government shutdown at least caused the U.S. GDP to drop by two percentage points. That's why they (Democrats) want to shut down again in a small way. Let's not shut down again! Also, lower interest rates!" (FXStreet)