The Atlanta Federal Reserve is projecting a contraction of the nation’s gross domestic product (GDP) of 1.5 percent in the first quarter, flashing a warning sign for the U.S. economy.
The projection is a significant shift for the Atlanta Fed over the last few weeks that comes a little more than a month after President Trump took office.
The Atlanta Fed last week was predicting 2.3 percent positive growth for the first quarter. A month ago, it was registering 3.9 percent growth.
The Atlanta Fed’s GDPNow measure is not an official forecast but rather a running estimate of real GDP growth based on data as it comes in.
The first quarter ends at the end of March, and GDP will be officially calculated by the Commerce Department.
But the forward-looking indicator’s major drop will still be of significant concern to policymakers, economists and markets alike, especially as fourth-quarter GDP registered a strong second estimate this week.
https://thehill.com/business/5169308-atlanta-fed-gdp-contraction/