US economic growth drastically slowed and the Fed’s preferred inflation gauge heated up at the end of 2025 – complicating the path to more interest rate cuts , economic reports indicated Friday. Gross domestic product, or GDP – which measures spending on goods and services – rose at an annualized rate of just 1.4% in the fourth quarter of 2025, well below expectations of around 2.5%, according to the Commerce Department. For the full year of 2025, the US economy grew at a 2.2% pace. That’s down

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