Atlanta Fed's GDP Forecast Plunges as Trade Deficit and Consumer Spending Raise Red Flags
The Atlanta Federal Reserve's GDPNow model has drastically cut its Q1 2025 growth forecast from +2.3% to -1.5%, marking one of the steepest declines ever recorded. The dramatic revision stems from an expanding trade deficit and weakening consumer spending, though analysts note these early projections could shift as more data becomes available.
U.S. Consumer Spending Dips as Inflation Edges Higher in January
U.S. consumer spending unexpectedly fell 0.2% in January amid severe winter weather, while inflation showed a modest uptick with PCE rising 0.3%. The mixed economic signals come as markets anticipate potential Federal Reserve rate cuts by mid-year.
U.S. GDP Growth Holds Steady at 2.3% in Q4 2024, Inflation Edges Higher
The U.S. economy maintained 2.3% growth in Q4 2024 according to revised estimates, marking a moderate slowdown from Q3's 3.1% expansion. Key inflation measures saw slight upward revisions, with core PCE rising to 2.7% amid steady full-year growth of 2.8%.