Tuesday's downward revision to third-quarter GDP is evidence the Federal Reserve isn't in a hurry to hike rates again.

"This is not the kind of number that's going to get the Fed to accelerate in their movement to gradually raise rates, but it is confirmation that the recovery continues, even if it's a little softer in the second half than we've seen earlier," said Michael Hanson, senior economist at Bank of America Merrill Lynch, based in New York.

The economy grew 2% during the third quarter, compared to 3.9% in the second quarter. Tuesday's reading was a notch lower than the 2.1% third-quarter GDP reading released in November.

"It wasn't a disappointing number, but it's not a great number if you look at where trend growth is in the economy, which is probably around 2 percent," he added.

Hanson expects three additional rate hikes from the Fed in 2016, but says "We do think that inflation is going to be a little bit slow to pick up -- we think it will increase, but perhaps not quite as quickly as the Fed thinks."

Meanwhile, Tuesday's GDP report showed a 3% increase in consumer spending during the quarter. "If you look back, five of the last six quarters have consumer spending at 3% or better," he said. "I think some people were hoping to see a little bit more of a pickup in consumer spending, particularly with low oil prices, but nonetheless, I think the consumer has been the strength of the recovery this year." 

Oil prices continue to slide, with West Texas Intermediate dipping to a six-year low and brent crude, the price for oil overseas, reaching its lowest point since 2004 earlier this week.

"It's one of the things that has markets a little bit concerned," Hanson said. "I would argue it's much more of a supply than a demand story. It reflects what looks like a little disarray in OPEC and a large glut of supply outside of the Middle East."