US economic growth drastically slowed and the Fed’s preferred inflation gauge heated up at the end of 2025 – complicating the path to more interest rate cuts, economic reports indicated Friday. Gross domestic product,

Learn how inflation affects borrowers and lenders, with insights into borrower benefits and how higher rates aid lenders.

The Commerce Department released the PCE inflation report on Friday, which showed the Fed's favored inflation gauge remained elevated as consumers deal with price pressures.

Friday's report suggests inflation could be cooling, but it comes after the cost of food, gas, and apartment rents have soared since the pandemic.

December inflation rose to 3% as GDP slowed, reinforcing the Fed’s decision to hold rates steady despite weaker growth data.

Q4 2025 GDP growth was weak at 1.4%, with a temporary government shutdown; december PCE inflation surprised to the upside. Read the full analysis here.

Wage growth is finally outrunning inflation, and that shift is quietly rewiring the outlook for the United States economy. With prices cooling, paychecks stretching further, and growth already surprising to the upside, the conditions are in place for a ...

Nobel laureate Joseph Stiglitz pointed to several concerns he had about the US economy, like the decline in blue-collar jobs & uncertainty over rates.