supermarket in Redmond, Washington, on November 24, 2025. David Ryder/ReutersWashington —
The US economy was on shaky footing even before President Donald Trump plunged the United States into a war with Iran, a battery of new data released Friday showed.
At the end of last year, economic growth was anemic, the Commerce Department said Friday, dragged down by the historic government shutdown. Economists widely expect most of those losses to be recouped in the current quarter stretching from January through March.
But America still has an inflation problem, according to January figures released Friday — one that will likely worsen if the Iran war continues to disrupt global energy markets. Consumers are already taking notice of higher prices at the pump, set to weigh on America’s already-weak economic mood.
The crosscurrent of intensifying price pressures and ongoing fragility in the labor market puts Federal Reserve policymakers in a difficult spot as they’re set to convene in just a few days to set interest rates.supermarket in Redmond, Washington, on November 24, 2025. David Ryder/ReutersWashington —
The US economy was on shaky footing even before President Donald Trump plunged the United States into a war with Iran, a battery of new data released Friday showed.
At the end of last year, economic growth was anemic, the Commerce Department said Friday, dragged down by the historic government shutdown. Economists widely expect most of those losses to be recouped in the current quarter stretching from January through March.
But America still has an inflation problem, according to January figures released Friday — one that will likely worsen if the Iran war continues to disrupt global energy markets. Consumers are already taking notice of higher prices at the pump, set to weigh on America’s already-weak economic mood.
The crosscurrent of intensifying price pressures and ongoing fragility in the labor market puts Federal Reserve policymakers in a difficult spot as they’re set to convene in just a few days to set interest rates.
