U.S. economy cools in fourth quarter, but consumer spending shines

U.S. economic growth slowed sharply in the fourth quarter as weak business spending and a wider trade deficit offset the fastest pace of consumer spending since 2006. The slowdown, which follows two back-to-back quarters of bullish growth, is likely to be short-lived given the enormous tailwind from lower gasoline prices. Economists had expected GDP to expand at a 3 percent rate in the fourth quarter. The report came two days after the Federal Reserve said the economy was growing at a "soli