US Economy Grew at 2.3% in Q4 2024, Matching Initial Estimate

Economic growth slowed from the previous quarter, with consumer spending remaining robust despite concerns over trade policies and inflation risks.

The U.S. economy expanded at an annualized rate of 2.3% in the fourth quarter of 2024, unchanged from the Commerce Department's initial estimate.
Growth decelerated from the 3.1% pace recorded in the third quarter of 2024, reflecting a slowing momentum heading into 2025.
Consumer spending, which drives over two-thirds of the economy, grew at a strong 4.2% rate in the fourth quarter, supported by year-end activity.
Federal Reserve policymakers have paused interest rate cuts after reducing rates by 100 basis points in late 2024, as inflation remains above the 2% target.
Concerns over President Donald Trump's trade policies, federal workforce reductions, and potential labor shortages from deportation plans are contributing to economic uncertainty for 2025.