Fourth-quarter U.S. GDP up just 1.4%, badly missing estimate

• Q4 GDP came in at 1.4%, significantly below the 2.8% estimate, marking the lowest GDP since Q1 2025.
• December PCE prices (month-over-month) were +0.4% (vs. +0.3% est.) and Core PCE prices (year-over-year) were +3.0% (vs. +2.8% est.), both hotter than expected.
• Consumption growth also slowed to 2.4%, and Treasury yields saw some movement, with the 2-year at 3.468% and 10-year at 4.067%.

Rick Santelli reports on key economic data, highlighting a significant miss in Q4 GDP at 1.4% versus an estimated 2.8%, indicating weaker economic growth. December PCE inflation metrics, both month-over-month and year-over-year, came in hotter than expected, suggesting persistent inflationary pressures. This combination of slowing growth and sticky inflation is leading to a negative market reaction, with futures trading lower.