Fourth-quarter U.S. GDP up just 1.4%, badly missing estimate; inflation firms at 3%

Fourth-quarter U.S. GDP growth disappoints

The U.S. economy's fourth-quarter growth rate came in at 1.4%, significantly lower than the estimated 2.5% pace. This news has sent shockwaves through the financial markets, with investors reevaluating their expectations for the economy's performance.

Inflation remains a concern

The core PCE price index, a key measure of inflation, rose 3% from a year ago in December. This is a slight increase from the previous month's 2.9% growth rate. The Federal Reserve is closely monitoring inflation levels, as they consider raising interest rates to curb price growth.

Market reaction

The fourth-quarter GDP report has led to a decline in stock prices, with the Dow Jones Industrial Average falling 0.5% in early trading. This news has also sparked concerns about the economy's prospects for the coming year, with some analysts predicting a slowdown in growth.

Expert analysis

CNBC's Jim Cramer has identified the fourth-quarter GDP report as a key indicator of the economy's health. In his top 10 things to watch in the stock market Friday, Cramer noted that the report's disappointing numbers could have significant implications for the stock market.

Conclusion

The fourth-quarter U.S. GDP growth rate has fallen short of expectations, raising concerns about the economy's performance. As the Federal Reserve continues to monitor inflation levels, investors will be closely watching the market's reaction to this news.

Sources

[1] Fourth-quarter U.S. GDP up just 1.4%, badly missing estimate; inflation firms at 3%
[2] Jim Cramer's top 10 things to watch in the stock market Friday