The US economy grew less in fourth quarter than previously believed

The US economy grew at a 2.7% annual rate in the final three months of the year, the Commerce Department reported Thursday. That’s less than the previous estimate of 2.9% growth in the quarter.

Is the economy as bad as it seems? Maybe not

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The slower increase in gross domestic product, a broad measure of economic activity, could be a sign that the Federal Reserve’s series of steep interest rate hikes are having more of an impact than previously thought.

Other recent economic readings, including the very strong January jobs report and a strong rebound in retail sales, suggest the Fed could do more to try to beat back inflation through higher interest rates meant to slow the economy.

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