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 econom… The post Does Strong GDP Matter if Fed Policy is King? Hayes’ Macro Take Revisited appeared first on Coin Edition .
