The Fed Faces A Slowing Economy And A New Inflation Shock

By Orphe Divounguy

(The Center Square) – Last week’s data painted an uncomfortable picture. The U.S. economy entered 2026 with less momentum than previously thought, and inflation was still running hotter than the Federal Reserve would like. Revised figures showed fourth-quarter GDP grew at just a 0.7% annualized rate, down from the earlier 1.4% estimate, a sign that growth was already fading before the latest geopolitical shock.

January’s income-and-spending report did little to ease those concerns...