U.S. GDP Growth on Track for Negative First Quarter, Atlanta Fed Indicator Says
The central bank's GDPNow tracker is indicating that gross domestic product is on pace to shrink by 1.5% for the January-through-March period, according to a Federal Reserve Bank of Atlanta measure. Early economic data for the first quarter of 2025 is pointing towards negative growth, with consumers spending less than expected during inclement January weather and exports being weak. The downgrade coincides with some other measures showing a growth slowdown.
- This downgraded forecast raises questions about whether policymakers' expectations are too high, given the current trend in consumer confidence and rising inflation concerns.
- How will monetary policy adjustments by the Fed respond to this growth slowdown, and what impact might these rate cuts have on the overall economy?