The Atlanta Fed’s GDPNow forecast has revised its prediction for the first quarter, now showing a contraction at a 1.5% annual rate. This would be the economy’s first quarterly decline since the first quarter of 2022. The change came after the government reported a larger-than-expected trade deficit in January. Higher tariffs from proposed by the Trump administration are believed to be driving increased imports, subtracting from GDP growth and contributing to the contraction.
Source: https://www.marketwatch.com/livecoverage/stock-market-today-dow-s-p-500-nasdaq-set-for-cautious-start-ahead-of-key-pce-data/card/regional-fed-bank-sees-negative-growth-rate-in-first-quarter-first-contraction-in-three-years-6bDyogbfNg8ZMHOuJpk1