Growth in the US economy was weaker than expected for the final three months of last year, according to figures released this afternoon.
Gross domestic product in the US expanded at an annual rate of 2.2% in the fourth quarter of 2006, which was lower than had been predicted.
Analysts have said that the latest figures mean that rate hikes from the Fed are not needed, with some analysts predicting that the next move is a rate cut. The Fed has held rates steady at 5.25% since June of last year.
For the year, the US economy grew 3.3%, down from the 3.4% earlier estimate.
On the inflation front, the closely watched personal consumption expenditures price index fell by 0.9%, the biggest fall since 1954 as energy prices dropped.
Spending on new home building tumbled by more than 19% during the quarter, the worst quarterly reading since the first three months of 1991.
During the fourth quarter, personal spending grew by 4.2% annually. For the year, spending advanced by 3.2%, slightly less than the 3.5% gain in 2005.
