AI and Tax Cuts: Navigating Through a Slower Economic Growth

The United States experienced slower than anticipated economic growth in the fourth quarter, mainly due to last year's government shutdown and a slowdown in consumer spending. The Commerce Department's data shows a 1.4% rise in GDP, short of the 3.0% forecasted by economists.

Despite these setbacks, investments in artificial intelligence and recent tax cuts are expected to drive economic activity in the coming year. However, a widening trade deficit and lower job creation signal challenges in maintaining robust growth.

A report detailed a K-shaped recovery favoring higher-income households while lower-income consumers face difficulties amid persistent inflation and inadequate wage growth. The implications of these economic conditions are pronounced, with only modest job additions outside pandemic years since 2009.