The Federal Reserve's expectations in the last Alaita show a great contraction in the US economy in the first quarter of 2025.
Then the gross domestic product form has been updated again yet Already last Friday, the increase was replaced by 2.3 % on February 19, with a decrease of 1.5 %.
This decrease increased to 2.8 percent in light of the two data.
According to the update, expectations were reduced by the American Statistical Office and the morning supply management data institute. According to the new expectations:
- Families, the largest component of GDP in the United States, which decreased by 1.3 % at the end of February- It is now expected to change 0.0 %, which means that the model predicts stagnation.
- the With investment in the private sector In addition to expectations It decreased from 3.5 % to 0.1 %.
If the gross domestic product model is accurate, it may mean that the American economy may be close to stagnation. Weak economic performance is expected to pressure the Federal Reserve to apply a more flexible monetary policy.
It is important to note that The GDPNOW model is automatic domain expectations that are constantly updated with the receipt of new economic data. Although the current estimate is a dangerous decrease, the data may still be received by the end of the first quarter, which will draw a more suitable image of the state of the economy.
The cover image is an illustration. Cover photo source: Getty Images
