Gross domestic produce rose at an annualized rate of just 1.4%, according to the Commerce Department, well below the Dow Jones estimate for a 2.5% gain.

The department estimated that the government shutdown, which ran through the first half of the quarter, probably took about 1 percentage point off economic growth.

At the same time, inflation held firm in December, according to a gauge most closely watched by Fed officials that increased 3% from a year ago