Hayes View Cited as US Q4 GDP Rises; Fed Policy Still Key
The post Hayes View Cited as US Q4 GDP Rises; Fed Policy Still Key appeared on BitcoinEthereumNews.com.
US Q4 2024 GDP revised up to 2.4% growth, boosted by consumer spending Business investment dropped sharply in Q4, signaling corporate caution late last year 2025 outlook clouded by Trump’s tariff plans, inflation, Fed policy questions Final government figures show the US economy ended 2024 on a stronger footing than initially estimated, though questions about momentum persist heading into 2025. Real Gross Domestic Product (GDP) expanded at a 2.4% annualized rate in the fourth quarter, revised slightly up from prior estimates of 2.3%, from robust consumer activity. This strong GDP growth in Q4 2024 was largely driven by a strong 4% rise in consumer spending during the holiday season, alongside increased government expenditures. Inflation, however, remained elevated. Additionally, the Personal Consumption Expenditures (PCE) price index (the Federal Reserve’s preferred inflation gauge) rose at an annual rate of 2.4%, exceeding the Fed’s 2% target. Solid 2024 Growth Tempered by Falling Business Investment Going by the entire 2024, the economy grew by 2.8%, a slight deceleration from the 2.9% growth observed in 2023. However, despite the overall economic expansion, business investment declined. Corporate spending on equipment dropped sharply by 8.7% during the quarter, suggesting businesses grew increasingly cautious about large capital expenditures late last year. 2025 Outlook: Trump Policies Add Layer of Uncertainty The question remains if the US will be able to sustain this growth with Donald Trump’s trade wars, federal workforce reductions, and even the pledges of widespread immigrant deportations. The tariffs especially could increase inflation and disrupt investment strategies, adding another complex layer to the current economic landscape. Although, at least for the crypto investors, tariffs shouldn’t matter, according to Arthur Hayes. Inflation, Fed Decisions, Trade Policy Key for 2025 Path While this is good news for the US economy, a lot has happened since Q4 2024. The current…
Filed under: News - @ March 27, 2025 10:19 pm