Economic growth in America took a breather in the fourth quarter, according to government data, with total output rising by 1.9 percent, compared to 3.5 percent in the third quarter.
For the year, Gross Domestic Product (GDP) increased at a 1.6 percent rate, the report said, down from 2.6 percent for all of 2015.
Taking out inflation guidelines, American output rose by 2.9 percent in 2016 to a total of $18.57 trillion.
The Commerce Department, which gathers the data, stressed that the report is preliminary, and a second estimate will be released at the end of February.
The Federal Reserve monitors economic data carefully to prevent runaway inflation and economic booms that can easily bust if growth is too fast. As the economy slowly recovered from the Great Recession of eight years ago, the Fed recently acted to raise interest rates slightly. But a fading economy now could mean the Fed will hold off further hikes to enable the economy to gain more strength.
Politicians often claim credit for economic good times, and blame their predecessors for any doldrums. In a larger reality, other forces beyond the control of government have greater influence on any economy.
However, fear can play as big a role as reality and easily trip up a growth cycle, just as over-exuberant investors can drive markets into unstable territory and result in a major downturn.
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