Tag: PCE inflation
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U.S. GDP Q1 2026: Growth Rebounds but Inflation Surges to 4.5%
The U.S. economy appears to have rebounded strongly in early 2026, growing at a 2.0% annual rate after nearly stalling in late 2025. But beneath that headline lies a harder story: inflation is surging back, consumers are pulling back, and much of the growth may be a statistical mirage.
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Economy Nearly Stalls in Q4 2025, but a Government Shutdown Shares the Blame
GDP grew just 0.7% in the final quarter of 2025, a sharp drop from Q3’s 4.4%. But a federal government shutdown that ran through most of October accounts for roughly a full percentage point of that drag. Here’s what’s underneath the headline.