The U.S. economy hit the brakes in the final months of 2025 as the fallout from President Trump's own government shutdown and a pullback in consumer spending dragged on growth. While Trump has long touted his stewardship of a booming economy, the latest economic data paints a more complicated picture - one that underscores the fragility of the expansion even as the President continues to claim credit for its strength.
According to Reuters, gross domestic product grew at a paltry 1.4% annualized rate in the fourth quarter, well below the 3% pace that economists had expected. The sharp slowdown from the 4.4% growth seen in the prior quarter was driven in large part by the 43-day government shutdown that began in late 2025 - an action Trump himself had championed despite warnings from his own advisors about the potential economic fallout.
Consumer Spending Slumps
The shutdown's impact was felt most acutely in a steep 16.6% decline in federal government spending, the largest drop since 1972. But the data also showed a notable pullback in consumer spending, which grew at just 2.4% in the fourth quarter compared to a healthier 3.5% pace in the prior period.
What this really means is that the resilience of the U.S. economy, which Trump has repeatedly touted, may be more fragile than the President would have the public believe. As AP News reports, consumers are increasingly taking on debt and dipping into savings to maintain their spending, a trend that could spell trouble ahead.
Inflation Concerns Loom
The economic slowdown also comes as inflation has begun to pick up, with PBS NewsHour reporting that prices accelerated in December and are poised to rise further in January. This dynamic could put the Federal Reserve in a bind, as it seeks to balance its dual mandate of price stability and maximum employment.
The bigger picture here is that Trump's economy, for all its initial momentum, may be starting to show signs of strain. With the President continuing to press for policies like tariffs that have fueled inflation, and his administration's own actions contributing to economic uncertainty, the road ahead could be bumpier than the White House would like to admit. Voters will no doubt be watching closely as the 2026 election season heats up.
