Trump's Policies and Shutdown Slow US GDP Growth to 1.4%
US gross domestic product grew by only 1.4% in the final quarter of 2025 after a record 43-day government shutdown severely curtailed federal spending.The Commerce Department reported that annual growth for the year reached 2.2% as Donald Trump's tariff policies and cooling consumer demand impacted the broader economy.Economists including Paul Ashworth and Steve Rick observed that federal expenditure plummeted by 16.6% while the unemployment rate climbed to 4.3%.Financial markets currently indicate a 94% probability that the
Fed will maintain interest rates next month as underlying inflation approaches the 2% target.