The latest data released by the U.S. government on Friday showed that the U.S. economy was already in a fragile state even before Trump's war against Iran. The U.S. Commerce Department stated that due to the historic government shutdown, the U.S. economic growth at the end of last year was weak, and the revised 2025 fourth-quarter GDP growth rate dropped to 0.7%, lower than the previously reported 1.4%, and far below the level of the third quarter.
Economists generally expect that most of these losses will be recovered this quarter (January to March). However, according to the January data released on Friday, the U.S. still faces inflation issues - if the Iran war continues to disrupt the global energy market, this issue will worsen further. Consumers have clearly felt the rise in oil prices, which will further affect the already weak economic sentiment in the U.S. Consumer spending in January barely increased, rising only 0.1%. The dual impact of intensified price pressures and a persistently weak labor market has placed the Federal Reserve policymakers in a dilemma as they prepare for the upcoming interest rate meeting.
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Original article: toutiao.com/article/1859617841604683/
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