Government Authorities can’t Control Consumer and Business Sentiment

10 March 2025

 

The Atlanta Fed’s GDPNow model (nowcasting) lowered its Q1 US GDP forecast significantly on Friday. The volatile model swung in response to January’s surge in imported goods ahead of Trump’s tariffs. In addition, consumer spending was depressed by a colder-than-usual January, so it is likely consumer spending, and the model will rebound in February. However, US Consumer and Business Sentiment over the last 4 weeks has dropped off a cliff....

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